Update for: 2012-05-21 - 2012-05-27

Posted on: Sunday, 20 May 2012 15:23


EURUSD: 1.2778

 Short-Term Trend:  downtrend


EUR declined last week and briefly broke below 1.2670 level but then rallied back above it. Our previous wave count suggesting a rally twd 1.3720 is still possible (because we finished the week abv the 1.2670 level). However, I know think that is not the most likely scenario. It appears the most likely scenario is the one presented above. This scenario is much more bearish as it suggests further weakness twd at least 1.2350 level.
On the upside, only a move abv 1.3000 will make the previously presented idea for 1.37 more likely again.

Strategy: Shorts favored at 1.2800/1.2850 against 1.3000. Target=1.2350.

Next Update: Sun, 05/27/2012.

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