The investment bank technical analysts are targeting mid 1.25 for the euro against the US dollar
- View: Biased higher, targeting 1.2562. Watch for signs of a top if/once reached.
- The market very recently completed what now looks like an expanding flat type correction. It made a marginal new low on Thursday against the 55-dma (1.2194) and formed a bullish key day reversal. If viewed within context of the v wave sequence from November, the minimum target for this next leg higher is 1.2562 (right above the previous two highs from January and February ~1.2537-1.2555). An extended 5th could continue as far as 1.28.
- Getting to these levels could theoretically mean the completion of a minor v of 5. This is therefore at risk of a larger topping process starting. Bottom line, want to be very careful of any/all signs of a turn if/once the market reaches 1.2562.
Elliot Wave people - thoughts welcome in the comments!
