Eur/Usd has recovered nicely from the 1.3836 lows, in impulsive formation towards 1.4282 region, which we know should be start of a new trend as Elliott Wave theory suggests. Even a recovery in this week from 1.4014 looks promising as a decline from previous resistance showed corrective qualities.
As such, wave (2) may have already hit a bottom and in such case, price should rise in the rest of the week above 1.4282 and then towards 1.44 trend line resistance.
Guest post by Gregor Horvat
Yesterday the S&P500 also moved nicely higher and closed 1.63% in green, which also supports the Euro and other major currencies against the US dollar. In fact, we see temporary lows on S&P500 at 1296 after previous three waves of decline from 1356. With this being said, all appears to be in place for further weakness on the US dollar!
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