EUR/USD is Bearish Below 1.3160

DailyFX

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eliottWaves_eur-usd_body_eurusd.png, EUR/USD is Bearish Below 1.3160

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote on Thursday that “price churned near the highs following ECB before falling apart as it’s possible that the ‘real good place for a top’ was indeed an important top. The decline has so far stopped at the trendline that extends off of the April lows. A drop below the line and test of the underside of that line next week as resistance would offer a swing short opportunity. Be wary of chasing on weakness at this point as the decline is mature on an intraday basis (may be nearing 5 waves down).” As it turns out, the decline from 1.3242 extended into 5 waves and Friday’s wild post NFP swings constituted a 3 wave advance. Look lower from here towards 1.2934 (61.8% and close of large range reversal day). Keep the big picture in mind.

FOREX Trading Strategy: Short, stop 1.3160, target open. Would consider automated breakout strategies below 1.2934 on a daily closing basis.

LEVELS: 1.2877 1.2934 1.3014 1.3096 1.31401.3180

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