By: Fadi Steitie
Trend Expected Direction: Down within a falling channel.
Method: Elliott Waves and Fibonacci Trading.
Description: With no changes in German PPI yesterday, the pair went into a complex correction that might last for a couple of days until we get a clear change in European economy. I still believe that EUR/USD has one more wave to go down in order to complete the drop cycle. We notice the first correction wave (A) just completed at 1.32626 and channel broke for a complex expanded flat for wave (B) That I think it will hit the resistance level at 1.32880 with minor abc before it falls down to 1.618 for wave (B). However, this trade is a bit risky because it goes with no change in news and based on pure mass psychology.
Recommendation: Sell pair for a minor correction that last for today and tomorrow.
Target Area: 1.31350
Stop Loss: 1.33500