Forex Trading Technical Analysis (2010/10/17) EUR/USD Correction – Elliott Wave
(Please click on the forex chart thumbnail to enlarge)
10/17/2010 Forex Trading Technical Analysis (FXpath.com) – EUR/USD (daily chart) – Euro reached new highs against the US dollar in the past week around 1.4150 but fell on Friday, and closed below the important 1.4000 psychological level. A downside reversal or at least a deeper correction may be near, especially as we can also count a clear five waves up from the 1.2587 wave (B)/(2) low. Elliott Wave traders assert that once a five wave move is done, a change in trend usually appears. As such, a break below the 1.3775 wave 4) low and a daily close below the red trend line will confirm that lower prices are potentially underway. The RSI indicator has already moved below its trend line support and suggests that the move from 1.2587 is near completion. A bearish cross on MACD is another signal for a potential US dollar recovery against the euro.
Gregor Horvat
Elliott Wave Financial Service
EW-Forecast.com
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