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    EUR/USD: a-b-c correction bullishly breaks above trend-line

       The pair has risen back up above 1.10. The chart below shows how it has risen up in an a-b-c correction which has achieved its initial target of leg C equalling the 61.8% extrapolation of wave A higher.

    This would normally indicate the pull-back has finished and there was about to be a resumption of the dominant short-term down-trend lower – and whilst this is still a possibility that that is the case – the situation is confused by the break above the key trend-line this morning, which is a bullish sign.

    Ultimately it could go either way. For a clear bearish move down I’d want to see a break below 1.0973 swing lows with a target back down at 1.0915.

    Alternatively a move above the current day highs at 1.1050 would confirm a continuation higher to a target at 1.1110 initially, which is just below the weekly pivot.
    EURUSD08b

       
    The pair has risen back up above 1.10. The chart below shows how it has risen up in an a-b-c correction which has achieved its initial target of leg C equalling the 61.8% extrapolation of wave A higher.

    This would normally indicate the pull-back has finished and there was about to be a resumption of the dominant short-term down-trend lower – and whilst this is still a possibility that that is the case – the situation is confused by the break above the key trend-line this morning, which is a bullish sign.

    Ultimately it could go either way. For a clear bearish move down I’d want to see a break below 1.0973 swing lows with a target back down at 1.0915.

    Alternatively a move above the current day highs at 1.1050 would confirm a continuation higher to a target at 1.1110 initially, which is just below the weekly pivot.
    EURUSD08b


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