Tanalys

EUR/USD Takes a Hit after Tagging Elliott Channel

4Hour

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Are you new to FX or curious about your trading IQ?

FOREXAnalysis: Bigger picture, a EURUSD head and shoulders top would be confirmed on a drop below 1.2743. Only above 1.3028 would suggest something bigger on the upside. Wrote Tuesday that “a final push into Elliott channel resistance (dashed line) and specifically 1.2948 (where the rally from the low would consist of 2 equal legs) isn’t out of the question before a run at 1.2744/96.” The EURUSD spiked all the way into 1.2997 and reversed violently. Look towards 1.2796.

FOREX Trading Strategy: No change from yesterday – “With the rally into 1.3028, reward/risk is favorable against 1.3028 for a run at 1.2796 and maybe 1.2744. Be careful about pressing the short side below 1.2796 however…a drop to there could complete 5 waves down from 1.3242. This is why the target is for listed as below 1.2796.”

LEVELS: 1.2744 1.2795 1.2833 1.2900 1.29971.3028

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