EURUSD – Near term downtrend is intact while the 1.2335/1.2410
resistance caps
The pair has been trapped in a multiyear triangle consolidation between 1.4950 and 1.1870. We prefer to view the setback from 1.4945 (May’11 high) as wave (D) of the large triangle which is likely to retest the 1.2000/1.1870 support on multi-month basis (even a slight push lower is possible). The 1.2695/1.2750 resistance is critical level for the bearish view ahead of 1.3000. A reversal above however
would refocus on 1.3485.
EURUSD has renewed its downtrend from 1.2750 and the near term wave may be a wave [v] of 3. The pair is attempting to hold above 1.2165 in the immediate term. We expect the 1.2335/1.2410 resistance to cap strength now. A break below 1.2165 would extend the bear run toward 1.2100/1.2000 before attempting to stabilise. Nevertheless, a reversal above 1.2410 refocuses on 1.2695/1.2750
Anantharajan .P, CMT (Technical Strategist, Precise Trader)
