GOLD longer term bullish trend still intact
December 3, 2012
DOW JONES moves upwards in an impulsive form
December 18, 2012

Greetings to everyone and thank you for your wishes. After one week, I’m back online to discuss EURUSD today and what could be expected since I see a bullish pattern that is forming and that could be confirmed very soon.

 

 

EURUSD as mentioned in a previous post, was in an short term and intermediate term bullish trend. Support levels were 1,2950 and 1,2880. The break of the first support level pushed prices towards the second level  where support was found. Prices now trade above 1.30 after having moved impulsively upwards (chart below). Looking at the bigger picture above, prices have broken the downward sloping trending blue line and back tested it at the 1,2660 low. From that  point on prices moved impulsively towards 1,31 and now retesting the red resistance line. The chart above shows us that this red resistance line now at 1.3125 connects 3 tops. The break of this resistance could give us targets as high as 1.37. The chart below shows us the current most possible wave cound and its alternative. Trend remains up and prices should break 1,3125 resistance for our bullish scenario to continue to have more chances. A pull back towards 1.2950 could take place as a corrective wave ii of 3. If we are inside a bigger correction wave degree, prices could pull back correctively towards 1.2850. If prices push even lower we should be very carefull if the start of this impulse (1.2660) is breached. Then wave counts should be reconsidered.

 

Concluding, we are bullish specially if prices move above 1,3125 and pull backs towards 1.2950 could be bought with stops just below 1.29.

 

As always, thank you for taking the time to read my post.

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.