An overview of the
currency markets by 
Greetings.
Well, the question on the minds of currency traders around the world is - will the EUR continue to rise?
We also had Jennifer asking if the EUR/USD will hit the 1.3700 mark in the 4Q. We’ll get to both of these right now.
There still seems to potentially be more uprise in the EUR/USD - although it looks to be losing some steam.
On the daily (or weekly) chart, we just broke and spread away from the 61.8% Fibo line (from the down trend in 2008). Some traders may look for it to go all the way back up to the high, but we’d also look at the 80% level - especially since this may potentially be a Ending Diagonal (ED) or even a truncated 5th wave (daily chart).
So, look for a potential turning point around the 1.5295 area.
Now, will it hit 1.3700 in the next couple of months? If this is an ED, then we typically see a fast, steep movement in one direction (in this case - up), then after it tops, it will drop very quickly. Some traders trade these formations very effectively.
How do we know when it “tops?” Look for a potential big final spike up (like the grand finale at a fireworks show) to get all the bulls out of the market then you can potentially see a nice steep decline.
The 1.3700 area is a bit “stretching” in the next couple of months at this point, however, that target seems potentially highly attainable once this market turns.
Good luck and happy trading. Remember to preserve your capital.
Also, many of you have inquired about the trade sheet. We will have something for you this week so stay tuned!
nice ..i like ..
Hi Arvind,
Thanks for the comment. Funny - we didn’t see this until today. Hope your trading is going well.