• Weekly and Monthly: The EUR/USD is declining past the swing projection, strengthening the bearish outlook further. The decline past 1.37 invalidates previous week’s wave count. (Refer to Daily Technical  Update 2.29.2010 EUR/USD).
• Count 1: One count refers to the 2008-2009 decline as ABC correction, and the 2009 rally as wave I, while the late 2009-early 2010 decline as wave II. The current leg of decline could be wave “c”.
• Price action at the moment suggests the decline eyes the 1.30 area (78.6% retracement). The first target is the 1.34/35 area, which the market looks poised to meet in the coming week.
• Count 2: If it doesn’t the market may be developing a bullish gartley at the 61.8% retracement area – 1.13. This retracement pattern, may be the the complete ABC correction after a terminate wave V.
• The stochastic in the weekly suggests further bearish continuation, while the monthly momentum reflects the sharp reversal of the past couple of months.
• In any case the 1.30 area is the next major area of support, and the market looks poised to reach this level.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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