The corrective process from the 1.4045 trend sequence low is progressing well. It has broken the previous high at 1.4250 and the downtrend and is holding a solid updrift. Indeed we are close to completing a 3 wave move with a C=A terminus of 1.4325 (using AB=CD harmonic pattern). However given the 8 day decline from 1.4965 that would look a little too small. In the daily perspective we are looking for a 4 day reaction to the 1.4390-1.4420 area. Thus we must allow for the almost completed 3 wave move to be only A of a larger correction. This leaves the risk marginally higher to 1.4325 before down in either a B wave or possibly trend. A B wave would probably hold 1.4120 for a rebound to the 1.4390-1.4420 target. A direct loss of 1.4045 would confirms the downtrend has resumed. Thus venturing short around 1.4325 should cover both options.
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| Chart extracted from Elliott Wave Analysis |
Failing to pree on after breaks to new highs leaves the Euro vulnerable to a reversal to 1.4160 + possible lower. Over 1.4310 opens way to 1.44xx
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