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The Euro is still trapped in tight ranges around 1.2700 in the markets and it is more than obvious that the corrective rally that started at the beginning of June is incomplete.

Notice that in the recent sell-off, the market did not break through the lower support line of a corrective channel, which means that price did not confirm a downtrend continuation!

EUR USD Elliott Wave Analysis June 21 2012
EUR USD Elliott Wave Analysis – Click image to enlarge

Guest post by Gregor Horvat

So, for now we need to stay with current sentiment, tracking a double zig-zag headed to 1.2780 resistance area, before the market turns bearish.

Bottom line: the recovery is corrective and   weakness will come!

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