Top Trade Idea For August 21st, 2014 – EURUSD
By Mircea Vasiu on Aug 21, 2014 12:19:30 GMT
It is a while now since we looked at the eurusd pair and it is time to see what recent moves indicate for the short/medium term.
From the moment the pair almost touched the 1.40 level price new nothing but the downside with some vicious moves, leaving bulls not the slightest chance to exit a wrong position. However, fortunes may change in a blink of an eye for the eurusd lovers.
The thing is that the whole move from the highs to the recent lows is corrective being a classical zigzag, a three waves structure that ended at 1.3360, and not at the current lows! There if where the five waves structure finishes, respecting all the possible rules.
That being the case, we should retrace 61.8% of the whole move from 1.40 to 1.3360 area and this means 1.37 back in cards. But this is no easy task as this b wave pink should be corrective as well, and most likely is going to be a complex correction.
When the ECB cut the rates for the first time back in last October, market was finding a strong support in the 1.3295 and from that moment on only rising till almost 1.40. Well, that was the target for this move lower, to wash away the 1.3295 stops, and now the real move may begin.
The last move lower is channeling too well but still has an extended third wave and this means terminal impulsive move. This pattern should be completely retraced and therefore our first target should be 1.3395, then buying any dip into 1.3320-40 area with 1.3740 take profit, while 1.3175 should be the stop loss.
About Mircea Vasiu
Mircea Vasiu has an MBA in International Business from an American University, graduating Magna Cum Laudae. He has been a professional trader for the last 8 years and is involved in various educational projects for different financial companies. He also runs a trading signal for the currency markets at www.capitalpropertiesfx.com.
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