EURUSD Begins Multi-Week Rally - Elliott Wave Theory can provide clues to our location within the EURUSD trend

• EURUSD finished a proposed ending wave of an ending wave of an ending wave suggesting a multi-week low on December 8, 2014
• Initial target zone is as high as 1.2900

Fibonacci Wave Ratio Analysis

• 5 clear waves higher from the December 8 low suggests the shorter term trend has moved higher
• One scenario suggests an immediate thrust higher under a small wave 3 to 1.2765 (see video and scenario #1 below)
• A second scenario suggests a drop towards 1.2340-1.2370 with the movement since December 11 creating an expanded flat formation (see video and scenario #2 below)

Bottom line, look for opportunities to buy EUR/USD on a breakout higher above this morning’s high or on a dip near 1.2340-1.2370. A move below 1.2450 will begin to suggest a deeper dip is likely towards the 1.2340 area.

If wave 3 unfolds, either immediately or next week, upside targets towards 1.2765 would be the initial step in a multi-week rally.