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EUR/USD In Upward Correction

ByAlexandros Yfantis
Published 05/22/2013, 12:35 AM
Updated 07/09/2023, 06:31 AM

EUR/USD has found support above 1.28 and is trying to make an upward bounce and reach the 1.2950-1.30 area. The upward correction scenario is supported by the fact that prices have managed to break out of the downward sloping channel from 1.32. This can be seen in the chart below.
EUR/USD 1
The green downward channel has been broken and prices will try to reach the 50% and 61.8% Fibonacci retracements. The current upward move has a 3 wave form that agrees with our view that the upward move is corrective. We believe that the major trend is down and after the correction is over, it will resume to put pressure on EUR/USD prices towards 1.25.
EUR/USD 2
In the chart above you can see the form of the upward move in a clearer way. There is no clear upward impulsive formation and the fact that there is no such evidence combined with the fact that prices mostly make overlapping moves, strengthens our view that this move is corrective. As long as prices hold above the green trend line we will assume that we are still making the upward correction. As soon as prices break below the red support level at 1.2840, we believe that downward pressures will accelerate the decline towards 1.27 at first.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.


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