The sharp and extended fall through the 2012 support line with a monthly price close beneath it suggests that EUR/USD will extend much deeper in 2013
In fact, on the line chart we can see that the decline is very clean and directional. The move can be counted impulsively, which is bearish sign for the pair, but we expect a three wave bounce back to 1.3150 -1.3250 in the next few days, before the downtrend extends.
The reason for a possible top in place on EURUSD is also German Bund market. For a more detailed Elliott wave video analysis on this, please check the video below.
VIDEO EURUSD vs. German Bund:
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