Prepared by Jamie Saettele, CMT
The last comments before my break were that “the move likely extends a bit higher…12566 and 12753 are objectives. Interestingly, these levels coincide with former pivots from early July (12558) and the former 4th wave of one less degree (12747).” The EURUSD extended higher than most bulls had probably expected and many are asking if this rally is the beginning of a larger uptrend. Consider that the current level is defined by former 4th wave extremes at 12747 and 12824, the trendline that extends off of highs in February, March and April, and channel resistance (albeit upward sloping) and then ask if you should turn bullish following an 800 pip run. My next move is to turn bearish but I don’t know if it will be after a slight new high (above Friday’s high) or after a drop below 12650. Sit tight for now but I must acknowledge today’s inside day following an extreme range day (on news) is the exact same setup that occurred on 7/2 and 10/28/11.
LEVELS: 12685 12720 12750 12824 12900 12955