Source: thewavetrading: EURUSD: Follow Up of the Short Term EWP | The wave trading

EURUSD: Follow Up of the Short Term EWP | The wave trading

EUR: FOLLOW UP OF THE SHORT TERM EWP

Content added from thewavetrading.com/2013/03...t-term-ewp-8/

BULLISH SHORT-TERM SET UP IF IT WITHSTANDS CYPRUS NEWS

Daily momentum indicators are suggesting that price should carry out a larger rebound:

RSI: Positive divergence at the last price low + higher highs/lows. The short-term trend remains up as long as the trend line support is not breached. The next resistance at the 50 line Stochastic: From the oversold zone on March 14 has issued a bullish cross MACD: Has an incipient bullish cross that needs to be confirmed next week

I maintain the long-term scenarios discussed in my last long-term update on September 9:

http://www.thewavetrading.com/2012/09/09/eurusd-update-of-the-long-term-count/

Regarding the short-term time frame (From the July 25 low):

The corrective pattern unfolded from the July 25 low suggests that price has not established a major top at February 1 high. In my opinion a Double ZZ has established the top of a wave (A) that could belong to a larger Zig Zag up (ABC) From the February 1 top price has began a correction that sould unfold a downward Zig Zag. The wave (A) can be considered completed last Thursday with a bullish falling wedge. If bulls are able to reclaim the 20 dma and the horizontal resistance located at 1.3162 then the assumed wave (B) could reach the range of the 0.382-0.618 retracement (Maybe the 50 dma = 1.3268 could deter a larger rebound)

A weekly Hammer candlestick is another bullish sign. In this time frame the prospect of a larger rebound depends if bulls are able to reclaim the 50 wma = 1.3128 While the major resistance is located at the 100 wma = 1.3315

If the assumed wave (A) has been established at last Thursday´s lod we need to see a higher low therefore if the EUR is able to endure successfully the negative news from Cyprus it should hold above the 10 d ma = 1.3025 (Last Friday, for the first time during the February down leg, it has achieved an eod print above it)