• Daily: The EUR/USD is poised to reach the 1.37/38 area, with both aggressive price action and continuation momentum in the daily. (Continuation momentum in Weekly suggests it may even decline below that level.
• Weekly: The weekly time-frame provides a bigger picture and shows a possible Elliott Wave (EW) count.
• The 2008 decline/panic was in a 2-wave manner, which is corrective in nature, so ABC label can work.
• The first rally attempt to start 2009 could be wave I, decline after was II, and we may be currently developing the primary wave III.
• Subwave count also follows EW principles – that is IF the 1.37 support holds. Otherwise the count needs to be adjusted.
• We should see the first attempt to start next week. If a rally can follow, a long-term projection using ratio analysis (projection wave III as 161.8% of wave I) brings wave III to near the 1.63 area.

Fan Yang
Currency Analyst
Commodity Trading Advisor

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