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Eur/Usd has recovered nicely from the 1.3836 lows, in impulsive formation towards 1.4282 region, which we know should be start of a new trend as Elliott Wave theory suggests. Even a recovery in this week from 1.4014 looks promising as a decline from previous resistance showed corrective qualities.

As such, wave (2) may have already hit a bottom and in such case, price should rise in the rest of the week above 1.4282 and then towards 1.44 trend line resistance.

EUR USD Elliott Wave Analysis July 20 2011

Guest post by Gregor Horvat

Yesterday the S&P500 also moved nicely higher and closed 1.63% in green, which also supports the Euro and other major currencies against the US dollar. In fact, we see temporary lows on S&P500 at 1296 after previous three waves of decline from 1356. With this being said, all appears to be in place for further weakness on the US dollar!

S P index Elliott Wave Analysis July 20 2011

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