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We expect further weakness on Eur/Usd after a fall in the past week with and type of a price action which suggests that decline from 1.3550 is impulsive.

With this being said, our bias is very bearish now within impulsive structure, and will look for more weakness ideally into 1.28/1.27 zone, while 1.3280 critical level holds! But already a break of the upper channel resistance line would threaten the bearish outlook.

However, be aware that is still not clear if pair is falling in wave 3) or maybe just in wave C). And the reason is price, which is still trapped within two parallel trend-lines.

But even if this is C), we still need five waves from wave 2)/B) peak, so in the short-term Euro should lose some value against the buck.

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Guest post by Gregor Horvat

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