EUR/USD Weekly Outlook and Trading Idea

Update for: 2012-05-14 - 2012-05-20

Posted on: Sunday, 13 May 2012 10:22

EURUSD: 1.2916

Short-Term Trend: weak downtrend

Outlook:

EUR declined below 1.3000 level and thus negated the bullish idea presented a week ago. Now, the wave count remains basically unchanged, but I expect to see more weakness in the next few weeks before the powerful rally in wave C starts. However, the downside potential is considered limited at this stage as the pair is expected to find support well abv the important 1.2670 level. So, the approach that makes most sense to me is to wait until there are signs that the current decline is over and then to position on the upside for the expected C wave up.

Strategy: The previous long idea was stopped out. I am now neutral

Next Update: Sun, 05/20/2012.

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