EURUSD—possible retest of 1.4159

From an Elliott Wave perspective, one would expect more moves down although within any reasonable interpretation there’s a chance for a move back to at least the 1.4159 top and possibly a bit higher. I like the possibility of a move up to 1.4238, the top of the current small channel. As a result, I just bought a small position at 1.3978.

Overall, though, my bias is bearish and I’ll be watching for a sign of another topside failure. Going below last week’s 1.3698 low would indicate additional moves down. A move below 1.3587 or 1.3500 would be extremely negative.

Here's the hourly chart:

















© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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