Thursday, September 22, 2011

EUR/USD New Wave Down - September 22, 2011

Eurodollar is in a bearish move down and it is expected to continue. There is some support at the old lows at 1.3490 including the S1 daily pivot, but these levels are already being broken as I write and downside momentum may build as stops are triggered below 1.3490.

The point and figure charts are showing bearish targets of 1.3410 and 1.3350. The latter is also an important support level as it is a monthly pivot and a Gann speed line are nearby. Euro/Dollar may also be tracing out a fresh elliot wave down now after the completion of the counter-trend correction on Wednesday.

Analysis prepared by:
Joaquin Monfort
Forex4you analyst