By: Fadi Steitie
Currency: EUR/USD
Trend Expected Direction: Down within a falling channel.
Method: Elliott Waves and Fibonacci Trading.
Description: Its Monday and the first trading day of the week. I went over the economic news of Euro and the US Dollar but could not find anything really interesting that might change the direction of the trend, and therefore I still believe that the trend will keep moving to its direction until it hits the upper falling trend line. Speaking in Elliot analysis and Fibonacci mathematics, The trend bounced early in its cycle which I expect a leading diagonal to shape up in the coming few days or probably a week before it retrace wave II and to continue going down. However, if we zoom in to check today movement, we can see wave (B) touched 1.31360 and bounced to unfold final wave (C) which I expected to end near 1.33700. In Fibonacci mathematics minor wave ii will do the 0.318% and leaves 0.618% for waves iii to v. However, trading in such cases is highly risky and I recommend follower to step aside and watch the trend moves up to expected level or near 1.33700 so we can pack our stuff and get ready to short the pair for a down cycle. If trend breaks 1.32870 after it retraces wave ii means we are on the right track. I will update you once changes take place in the market so stay tuned.
Recommendation: Do not step in, just watch the market breaking 1.32950
Target Area: N/A
Stop Loss: N/A
