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In just 24 hours Eur/Usd has broken through two very important trend lines, that will send this pair into much deeper levels. A key reversal level for this move occurred at 1.45, where a recent corrective pull-back labelled as a black wave 2/B has topped out. You will notice, that in late NY trade yesterday, the Euro fell below the lowest base channel line which in most cases confirms a third wave move of an impulsive structure.

Guest post by Gregor Horvat

So, if we are correct, then next targets are at 1.39, near 161.8% Fibonacci extension level, which is the most typical Fibo target for third wave.

Trend remains bearish as long as the market trades below the highest trend line resistance of a base channel!

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