Thursday, March 29, 2018

EUR/USD Continues Consolidating And The Expectation For A Rally Remains Valid

EUR/USD is still range-bound and it seems that a new phase of the impulse movement won’t begin until the pair tests the diagonal trend line of support of the upward movement from January 2017 until now.

 Still, this moment is getting closer I hope and I think we should follow the development of this pair during the test of the support trend line (in red). My expectation is that the correction to the downside will be limited to around 1.2230 – 1.2250.

The prognosis for a final rally toward 1.2700 for a fifth out of fifth wave remains valid for the moment.

In case the pair drops below 1.21543, however, the expectation above will be invalidated and a new assessment of the wave counting will become necessary.