Chart Alert EUR/USD – FXWW Chatroom

Recovery will meet key hurdle at 1.20/1.22. 
Having tested key support near 1.05/1.04 back in March, EUR/USD has embarked on a 
recovery. It is noteworthy that historically this channel has lent support after elongated down 
moves (e.g. post five year and six year downtrends in 1985 and 2000 respectively). Current 
monthly close, if largely positive, would form a bullish engulfing. 
The rebound since March has accelerated recently after the pair broke above a triangle within 
which it consolidated for nearly five months. EUR/USD has hit an intermittent target of 1.1680, 
the 38.2% retracement from last October. However, sustaining above the triangle limit of 
1.1385/70, the recovery should be persistent. Monthly RSI too shows further room before it 
touches a resistance trend and the pair is likely to head towards 1.1810/75, the weekly channel 
limit and the 38.2% retracement from last year highs. 
From an Elliot standpoint, this recovery appears to be the fourth wave within a larger downtrend 
and still looks to be of corrective nature. Considering this, 2012 lows of 1.20/1.22 should be able 
to block this move.

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