EUR/USD Below 1.3400 Needed to Suggest Deeper Decline is Underway

DailyFX

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eliottWaves_eur-usd_body_Picture_10.png, EUR/USD Below 1.3400 Needed to Suggest Deeper Decline is Underway

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

-The EURUSD has responded to the bottom of former trendline resistance lines in recent weeks.

-Trade since early October may compose a head and shoulders top. Weakness below 1.3400 would be an early sign that the move is accelerating lower.

-Exceeding 1.3580 would focus on 1.3650.

Trading Strategy: Indications are that the larger trend has turned back down. I wrote last week that “I am looking to short into 1.3470. The stop needs to be above 1.3580.” This could work but there are better ideas out there, including GBPUSD.

LEVELS: 1.3363 1.34271.3479 | 1.3556 1.3600 1.3650

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