Short-Term Trend: weak uptrend
Our entry point at 1.3010 was elected last week and we are now bullish. The decline from the early March top is a bit faster than we wanted to see, but still it remains a clearly corrective move. And the wave structure from the July 2012 low still favors the Diametric formation which means the current decline will end in the next 2-3 weeks and will likely bring higher prices. Based on the price relationships between the waves from the July 2012 low, we think that wave D is likely over in terms of price and a move below 1.2870 level seems unlikely at this stage. So, most likely we will see sideways trading for a week or two before the next leg higher (wave E) starts...
Strategy: Holding long from 1.3010 is favored. Stop=1.2870. Target=1.4010.