At the time of last week’s analysis the EUR/USD was trading at 1.29298. Our bias called for the EUR/USD to decline & retest the bearish target zones of 1.28490 – 1.28070 and potentially 1.27830 – 1.26630. We were then looking for the EUR/USD to continue its rally up to the bullish target zone of 1.30470 – 1.30770. We anticipated a close & retest that stayed above 1.30470 – 1.30770 would then open the way up to the bullish target zone of 1.31363 – 1.32366. Our exit strategy called for a larger decline towards our bearish target zones of 1.25070 – 1.23897 and 1.23170 – 1.22817. The EUR/USD declined to a low of 1.28532 on 1/22/12 and then rallied to a high of 1.32290 on 1/27/12. The EUR/USD closed the week at 1.32189.
In our timing analysis we anticipated a minor swing point would occur between 1/24/12 – 1/26/12 and also between 1/31/12 – 2/1/12.
Our long term price analysis still remains bullish as the waves appear to be unfolding in a larger degree 5-wave corrective pattern. We’re anticipating a long term rally that will trade towards and potentially beyond the bullish target zone of 1.57770 – 1.60380. Our bias calls for the EUR/USD to rally up to the bullish target zones of 1.33070 – 1.33470 and potentially 1.34370 – 1.34890. We will then look for the EUR/USD to decline down to the target zone of 1.30770 – 1.30470 and potentially down to 1.2977 – 1.2937. Our exit strategy calls for the EUR/USD to continue its rally towards our bullish target zones of 1.36090 – 1.36930.
Our long term momentum indicators are mixed and signal a potential sideways choppy market or a sharp decline in the EUR/USD over the next few trading days. The lower timeframe’s momentum indicators are overbought and we’re looking for clues and signals that will indicate a decline in the EUR/USD has begun.
Our long term timing projections allow us to anticipate a potential significant swing point may occur between 3/4/12 & 3/18/12. Our short term timing projections allow us to anticipate a minor swing point may occur between 1/31/12 – 2/1/12 and also between 2/4/12 – 2/7/12. Our timing projections allow us to anticipate potential turning points in the marketplace. With our timing projections there’s a factor of +/- 2.