Euro Broke Through January Support Line – Trend Clearly

4

The euro keeps falling, forming a nice impulsive fall from the 1.3480 top. Notice that yesterday’s price action sent the euro below the falling trend line connected from January lows, which also represents a lower support of a corrective channel.

We know that once this channel is broken, that simply means that larger trend is again underway. And in our case this is to the downside. So we can expect more Euro weakness in days and weeks ahead, while the 1.3480 top is locked in.

EUR/USD Elliott Wave Analysis March 7 2012

In the very near future, what would be nice to see is a bottom of a wave 1, around 1.3050 and then a pull-back back towards the trend-line which will then tend to react as a resistance in wave 2.

Do you like analysis? You want to get something simmilar more often? Join us now at www.ew-forecast.com

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

4 Comments

  1. I like this analysis but one thing it fails miserably is the fact that big news days move the most, a perfect example is today, and this analysis has completely failed

  2. Pingback: Forex Links for the Weekend March 10 2012 | Forex Crunch

  3. Pingback: Forex Links for the Weekend March 10 2012 | Forex Crunch | Forex