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Tuesday, December 31, 2013

EUR/USD - Is wave E done at 1.3894?




EUR/USD:

With the break above 1.3832 we knew, that wave E could not be in place and that a new higher top was needed and we have seen a rally to 1.3894 and here we are Again in the same dilemma. Is wave E done at 1.3894 or was that only wave a of a new a-b-c correction higher towards 1.4247?

As long as support at 1.3655 protects the downside I will give the upside the benefit of the doubt and look for a new recovery to above 1.3894 for a rally towards 1.4247. However, if we do see a break below 1.3655 the pendulum swings in favor of an important top already in place at 1.3894.



2 comments:

  1. Morning EWS:

    Have you seeing the COT positions in EURUSD for the last moths? Amazingly they are waiting for an uptrend...
    http://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm

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