Is EURUSD preparing for another move down?

Using Forex Signals
January 14, 2014
More upside potential for USDJPY
January 16, 2014

EURUSD has completed 5 waves down from 1.3892 and is currently in a correction phase, Our preferred scenario implies that only wave A and B are complete and that we should expect an upward wave C that will bring prices near the 50% or 61.8% Fibonacci retracement.

EURUSD2H

Support is found at 1.3580-1.36. This is important support that if broken, we might not need see wave C up. If this support level is broken, it will be very possible to have completed the entire upward correction at 1.3698 high that we currently label as wave a. Our main view however remains bearish with 1.34-1.33 as the first target area.

EURUSDDAILY

Concluding our view is bearish with 1.38 as a stop for our bearish view. A move towards 1.3720 could be a great opportunity to go short this pair. However we cannot rule out the possibility to see the decline start from current levels if support at 1.3580 breaks. For more help trading this pair, become a member today.

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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.