- 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.