EUR/USD
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Monday 2014-05-12 14:18:03
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now has a very interesting outlook at least for the short to medium term perspective. It shows that it has cleared the 2014 high at 1.39667 and return right back down.(white circles) This obviously is a nice wash and rinse of the important high. It couldn't break 1.4000. This actually happened because of Mr. Mario Draghi tried to talk the EUR down as usual by saying that the EUR's strength was a serious concern for the economy especially for the too low inflation that has been worried for quiet a while. Well... he tried to do this for numbers of times and it didn't work. Euro kept strengthening but this time it fell substantially.
I still wouldn't want to say that this is a real long-term reversal to the down side for the EUR/USD yet. For that to happen it needs to at least break the 1.3475 which is the 2014 low and also the yearly pivot point as for technical point of view. For the fundamental side, he really needs to take actions as he was saying that the ECB is comfortable in taking action by the next meeting in June otherwise I think that Euro would strengthen again.
For now I would look for the EUR to take out the low of 1.3672 (look at the arrow) and then the next target is around 1.3500/50 area. So I will look to take short on a bounce to around 1.3840 area. That's the 38.2 fib resistant of the whole swing down.
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