Good morning all,
As we have expected in our daily market analysis yesterday, the EUR/USD prices slipped to reach the 1.2356 level.
We notice on the weekly chart that the prices are trading within a downward channel and it has succeeded in breaching the base of the downward triangle.This confirms the continuity of the bearish trend.
The ADX indicator has breached up the 20 level, this supports the power of the bearish trend.
Today we expect the prices to retest the main support level of 1.2356.
Should the prices breach down this level, the next target would be towards the 1.2330 level then to the 1.2293 level which corresponds to the impulsive Elliot wave.
We expect that the EUR/USD prices will recover on the short term towards the 1.2464 – 1.2450 area.
Then it will resume its general downward trend to reach the 1.2293 level.
Good Luck traders
(Read more http://www.mbcfx.com/news/news_en31_05.html)