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Europe and US have holidays today, which means that markets could be slow as traders are away from their desks. Sometimes holidays will also cause a reversal, a pullback against the direction that was ahead of the holiday. It’s called »Holiday Reversal « which means that USD could make some pullback lower if we consider that the trend was up sharply last week. But any pullbacks will be temporary and corrective. So my suggestion is to stay aside with any new trades today and rather wait for possible pullbacks and focus on new trades later this week from »better « levels. You definitely don’t want to sell EURUSD at the lows.

On EURUSD we see a completed wave 2)/B) at 1.1210 so a third leg down is in progress which could reach the 1.0800/1.0820 area based on projection of equal legs. In the meantime any bounce could be corrective that would stop at 1.1062, at former lows.

EURUSD 1h Elliott Wave Analysis

EURUSD Elliott Wave Analysis May 25 2015 chart for currency trading

GBPUSD is also bearish after breaking beneath the channel line at 1.5586 on Friday. We see the move as very sharp so it can be part of a new impulse. That said, keep an eye on more weakness after any corrective rally. We are talking about wave (ii) that may stop near 1.5586 resistance if the market turns up from here. The pair remains bearish as long as it trades 1.5700.

GBPUSD 1h Elliott Wave Analysis

GBPUSD Elliott Wave Analysis May 25 2015 chart for currency trading