Forex Charts

EURUSD – initial 5-wave rally breaks wedge resistance; 1.25 next hurdle

The Euro resolved higher from a bullish falling wedge.

The Euro bounced from wedge support and this was also major trend support from 2010.

A 5-wave decline from channel resistance would have made sense in the bigger picture but

Kiwi tried and failed to break the critical .7684 level and that leaves behind a small bear trap.

Focus continues to be on the oil market and the potential repercussions on Emerging Markets.

Another quiet day on the data front today. Germany releases trade balance and wage costs this morning.

Friday we projected a target of 1.5540 to complete wave-C of (b) of an expanded flat correction.

The Euro has been wedging lower since October and the wedge target is 1.2235;

Still well within its Nov/Dec up channels.

Moving to a monthly charts shows the next major support zone for

The main event today is the November labour market report in the US.

There is clean bull triangle developing on the daily.