Euro Forming A Higher Corrective Pull-back; Now Threatening 1.4500

Euro Forming A Higher Corrective Pull-back; Now Threatening 1.4500

Euro is forming a short covering rally after the some powerful downward reaction at the end of the past week, which is quite interesting after S&P downgraded Greece to negative CCC outlook. In normal circumstances you would expect a Euro sell-off, but technical always win, very similar and contrary reaction that was already seen in the past week, during the ECB press conference.

Our outlook for the Euro remains bearish as we believe that a decline from 1.4699 is an impulse followed by a current bounce higher that should be corrective recovery, labelled as a black wave B/2.

Guest post by Gregor Horvat

On the Intra-day basis we are monitoring two different wave counts:
The first one shows a double zig-zag in wave B/2 which in fact should be trading in late stages of that move.

Count #1:

Count #2:

However, you may noticed that on both counts, prices are headed into huge resistance around 1.4500/50, but because of the S&P futures which bounced higher in five small waves from 1259, we  favor the wave count number two!

S&P Count:

Also another thing, just look at this S&P Futures/Euro overlay chart.

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*EXPIRES on Tuesday June 14th  2011 at 23:59EDT

Gregor Horvat

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!