Trade Update: EURUSD, pattern looks confirmed

 

About this post: http://blog.vikasverma.com/2010/01/trade-update-eurusd-short.html

Euro broken the support line as expected and may trade there for morning Asian session below that line or even for a day or two before firing back above this broken support line and reach for the target.

This is not the only signal that is bullish for Euro , there is another pattern in US Dollar Index which is looking bearish.

In the below image you can see a smaller wave inside a larger wave, now if USD Index goes above 79.85 – 80 level that can trigger even tragic wave for USD and it can fall all the way back to sub 76 levels but if that does not happen (which I assume will not) then USD Index will retrace to touch the support line of the channel where the smaller wave will complete its target.

To add to this overall bearish sentiment of USD, there will be non-farm payroll data on the 5th February for the month of January and by no mean that is going to be positive at all.

Remember the NFP data for month of December, released on 8th January? That gave over 250 pips rally to Euro within 1 hour.. that was killing money and was visible in 4H chart of EURUSD