In just 24 hours Eur/Usd has broken through two very important trend lines, that will send this pair into much deeper levels. A key reversal level for this move occurred at 1.45, where a recent corrective pull-back labelled as a black wave 2/B has topped out. You will notice, that in late NY trade yesterday, the Euro fell below the lowest base channel line which in most cases confirms a third wave move of an impulsive structure.
Guest post by Gregor Horvat
So, if we are correct, then next targets are at 1.39, near 161.8% Fibonacci extension level, which is the most typical Fibo target for third wave.
Trend remains bearish as long as the market trades below the highest trend line resistance of a base channel!
For more analysis visit us at http://www.ew-forecast.com/
Follow us on twitter.