Multiple Patterns Suggest Near Term Sell Off Towards 1.0750
Updated
Multiple Elliott Wave patterns are lining up that suggest EURUSD may fall towards 1.0750.
1) In the context of a medium term bull trend, an a-b-c expanded flat from Dec 3 points to 'c' of 2 to 1.0750, then a larger bull run kicking off
2) A wave 4 triangle suggests this move from Dec 3 to Dec 9 was 'a' of a triangle. 'b' of a triangle likely presses towards 1.05-1.06.
Much above 1.1048 and these shorter term patterns are hampered and see the December 4 post for a medium term analysis.
Keep a close eye on the Speculative Sentiment Index. It is a contrarian indicator and if begins to run lower than -2.0, then that might suggests this short term view isn't going to happen. It is currently printing at -1.6. You can follow real time S S I here.
1) In the context of a medium term bull trend, an a-b-c expanded flat from Dec 3 points to 'c' of 2 to 1.0750, then a larger bull run kicking off
2) A wave 4 triangle suggests this move from Dec 3 to Dec 9 was 'a' of a triangle. 'b' of a triangle likely presses towards 1.05-1.06.
Much above 1.1048 and these shorter term patterns are hampered and see the December 4 post for a medium term analysis.
Keep a close eye on the Speculative Sentiment Index. It is a contrarian indicator and if begins to run lower than -2.0, then that might suggests this short term view isn't going to happen. It is currently printing at -1.6. You can follow real time S S I here.
Note
EURUSD is still hanging out in the upper portion of the range. Real time Sentiment is holding near -1.48 goo.gl/B7HU4a . 1.1090 is the key level for bears and we can turn bullish there.Note
The wave picture has muddied a bit. We've fallen as anticipated, but the clarity of do we move in bullish or bearish fashion isn't as clear.There is some minor support in this area (currently price is printing 1.0720).
Sentiment is growing more bullish which isn't good for a bullish trader. Current Sentiment reading is +1.1. Perhaps wait for resistance trend lines or horizontal resistance to break prior to testing bullish waters.
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