EUR/USD Elliott Wave Count for January 27, 2012

Market Overview
Yesterday the EUR/USD pair reached the level 1.3180 starting the descending movement from this resistance level. The news concerning the positive financial situation in the USA influenced the exchange rate of the pair. As a result the dollar has strengthened against euro and pushed the price to the level 1.3109. At the moment the price is testing the 50EMA support level. In case the level 1.3085 is passed through it will be possible to consider the 100EMA the next support level located near the point 1.3045.

Support and Resistance
(S3)1.3034 (S2)1.3070 (S1)1.3091 (PP)1.3127 (R1)1.3163 (R2)1.3184 (R3)1.3220

Important News
(EUR) German Import Prices m/m
(EUR) M3 Money Supply y/y
(EUR) Private Loans y/y
(EUR) ECB President Draghi Speaks
(USD) Advance GDP q/q
(USD) Advance GDP Price Index q/q
(USD) Revised UoM Consumer Sentiment
(USD) Revised UoM Inflation Expectations
(USD) FOMC Member Dudley Speaks

Elliott Wave Analysis for EUR/USD
For 10 days the EUR/USD pair remained within the bullish tendency. This week the new (1) wave was formed. At level 1.3062 the euro indicated the possibilities of a bullish motion in the first quarter of 2012. Presently we can observe the 2nd sub-wave within the wave 3.According to our wave rules and concerning that the wave 2 will be completed at 50% retrace of the wave 1 we can define our potential targets for entering the wave 3 according to Fibonacci Retracement (1.2928-1.3184) – 50% retrace at level 1.3056. For Stop Loss level we can use the end of the wave 2 at level 1.2928

eurusd270112 EUR/USD Elliott Wave Count for January 27, 2012

Trading Forecast

Taking into account Elliott Wave Rules we can expect that today the trend will go upwards. Thus, it is recommended to open long positions at level 1.3056 with Stop Loss at level 1.2928 and Take Profit at level 1.3475.

The material has been provided by Instaforex Company – instaforex.com

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