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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.

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