Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

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Tuesday, November 29, 2011

EUR-USD Technical Anlalysis 2011.11.29

The EUR-USD cross formed a falling wedge pattern during the month of November and the low of 25th nov. did not reach the previous low of early October at the 1,3150 level .

The fail to reach the 1,3150 support level reflects the bearish weakness, though setting the market for a probable break above the T1 trend line. This would confirm the emerging of wave 4 of the larger decline move started in late October.

The Elliott Wave count confirmed the previous analysis ( ) and wave 3 is, the most probable, finished.  As wave 2 (between 1 and 9th of November) evolved as a relative flat move, the chances are that wave 4 will be a zig-zag. Therefore, this could travel up to the 1,3610-1,3656 resistance zone which represents previous highs and lows.

In conclusion, I expect a swing up in the EUR-USD cross triggered by the brake of T1 trend line. I would like to mention that a possible break and retest (of T1 line) move could develop, before the up move will resume and the target will be activated. 

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