An overview of the
currency markets by 
Greetings.
Continuing with Vytas’s post/comment from earlier this week, let’s take a look at the EUR/USD. It was asked if we think the EUR/USD is still in an impulse movement up.
According to our analysis, it does seem that the EUR/USD is still in an impulsive movement up. Depending on which time frame you analyze the currency pair in, the longer time frames are still showing up.
However, please review our chart to show some the potential movement of the pair. Look for shorter term movement down and then a strong, impulsive movement back up (daily chart). We may be currently forming Wave 2 of an Impulse Wave 5.
Potential stop loss - 1.3832 (daily chart)
How high will it potentially go? Look for it to potentially test the 1.4400 area again. If it breaks that point and spreads away, then look for it to go as high as the 1.6000 area again and beyond.
Once we get a clearer picture of the shorter time frames, we’ll post that up.
Good luck with trading and see everyone again shortly.
Cheers.
Sir, do you mean 1.46 and beyond, not 1.6 right?
Thanks
Hi Sam,
Thanks for your question/comment.
Our initial analysis says that the EUR/USD will test the 1.4600 area. Please refer to our latest ‘Traders Edge’ entry for the latest analysis.
IF the EUR/USD goes above the 1.4600 area and starts to break up (showing a break of a major barrier), then look for it to potentially end up testing the 1.6000 area again (from June/July 2008).
Now, this won’t happen in a straight line upward, however, this is a general longer term analysis that you could use in conjunction with your own analysis.
Thanks again for your comment and please let me know if you have any more questions.