Commentary: After reviewing the charts, we favor the idea that a rally in wave 2 within a 5 wave bear cycle from 1.1594 is underway. Expect this rally to test the 1.1375 area (former 4th wave is at 1.1371 and 61.8% of 1.1594-1.1018 is at 1.1374). This fits with a EURUSD decline to the 1.4500 area before the next leg of dollar bearishness gets underway.
Strategy: Bullish, against 1.1018, target 1.1370
Al Bawaba
