EUR/USD Double Inside Day; Holding on for Dear Life to Trendline

DailyFX

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eliottWaves_eur-usd_body_eurusd.png, EUR/USD Double Inside Day; Holding on for Dear Life to Trendline

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: The EURUSD decline has so far stopped at the trendline that extends off of the April lows but today’s double inside day warns of a much larger move. What’s more, the decline from 1.3242 extended into 5 waves and Friday’s wild post NFP swings constituted a 3 wave advance. Look lower. 1.2934 (61.8% and close of large range reversal day) could be a level where weakness pauses. Keep the big picture in mind.

FOREX Trading Strategy: Short, stop 1.3160, target half at 1.2940 and open on the rest. Would consider automated breakout strategies below 1.2934 on a daily closing basis.

LEVELS: 1.2877 1.2934 1.3014 1.3118 1.31801.3242

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