EUR/USD - I think we saw the top of wave 2 with the test of 132.91 and that we will soon see a break below support at 132.07, which will be the first minor confirmation that wave 2 indeed ended at 132.91. The final confirmation will be a break below 131.83 as that will leave us with an overlap between wave i and iv of C, which is not allowed under the EWP.
Dow Jones Industrial - We back tested the broken trend-line back from October 2011. This former support now acts as resistance and should pose a low risk selling opportunity with a stop just above the top at 13,055.75 for a break below important support at 12,753.
Even if the top at 13,055.75 is taken out (not my preferred view), the possible further upside progress should be limited to near 13.115, where Y = W in length.
I will just do a quick update on EUR/USD this morning, but will be updating other interesting charts later.
EUR/USD - There is a possibility that we have seen the end of wave 2 at 132.91, which marks the 50% retracement of the decline from 134.86 to 130.95. However I would like to see a break below 132.07 and more importantly below 131.83 as that would leave us with an overlap between wave i and iv, which is not allowed under EW.
As long as support at 132.07 protects the down-side we must allow for for last rally higher towards the the 61.8% retarcement target near 133.36. A break above back above 132.71 would call for the move higher towards 132.91 and 133.36.
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