I have always viewed that EURUSD is trading a big triangular range between 1.0500-1.1700, which consists of waves(A)(B)(C)(D)(E). This view is still valid. In my previous post a couple of weeks ago, I had prematurely labelled the high at 1.1465 as wave(C) and turned bearish when it started to weaken. I was wrong. As it turned out, it did another up move to 1.1615.
On the day it hit 1.1615, it closed weak and created a bearish Dark Cloud Cover candlestick pattern. That enhances the view that it has completed the wave(C) rally. From here, it is on the wave(D) down wave which is expected to last 3-4 months. Target for wave(D) is around 1.0750.
We also note that the Dollar Index might have finished its downward correction when it hit a low od 91.88 this week and rebounded to 93.30 currently. I expect further upside momentum towards 94.00 soon. Above 95.50 signals a strong USD rally against the majors. Keep a watchful eye on the Dollar Index as EURUSD is a major component.
On the day it hit 1.1615, it closed weak and created a bearish Dark Cloud Cover candlestick pattern. That enhances the view that it has completed the wave(C) rally. From here, it is on the wave(D) down wave which is expected to last 3-4 months. Target for wave(D) is around 1.0750.
We also note that the Dollar Index might have finished its downward correction when it hit a low od 91.88 this week and rebounded to 93.30 currently. I expect further upside momentum towards 94.00 soon. Above 95.50 signals a strong USD rally against the majors. Keep a watchful eye on the Dollar Index as EURUSD is a major component.
