EUR/USD: Stalking Correction
- Daily and 4H: The EUR/USD pair has found at least a short-term bottom at the 1.2235 area. Now if the market does not top off at the 1.25 area, it may go to the 1.28 area.
- This 1.28 area is the 38.2% retracement in the daily, and 61.8% retracement in the 4H using different degree of the downswing.
- This is also a logical target for a corrective wave if we are done with an impulse wave that started at 1.37 on April 13. In the daily, you can count three waves down.
- A reinforcement for a correction scenario is the bullish divergence with the RSI in the daily. The RSI in the 4H can be anticipated to roughly test the 60 level at the completion of a correction.
- 1H: The 1H time-frame shows the EUR/USD breaking above its SMA 50. More importantly the momentum is being tested. If the RSI can break above 60, it can be a confirmation of a correction scenario.
Fan Yang Currency Analyst Commodity Trading Advisor