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Tuesday, January 7, 2014

EUR/USD - Look for a decline towards 1.3452 in wave v.

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EUR/USD:

With a correction high at 1.3653, the wave iv correction fell a Little short of the ideal target near 1.3666. Short term I expect minor resistance in the 1.3632 - 1.3647 area to protect the upside for a break below 1.3593 confirming, that wave v lower towards 1.3452 as the ideal target.

At 1.3452 wave v will be 61.8% of the distance traveled from the top of wave i at 1.3894 to the bottom of wave iii at 1.3571. However, we will have to remember, that once we have broken below 1.3571 all requirements for this five wave decline is fulfilled.

2 comments:

  1. What will happen after wave "v" is fulfilled? Will it head toward 1.41?

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    Replies
    1. Hi Hung Lai,

      Once wave v is over we should see a correction towards 1.3676, but this correction should be followed by a new powerful decline towards at least 1.3200

      Kind regards
      EWS

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