The EUR/USD pair has bounced right at the 1.3110 area indicated in yesterday’s video provided in my Newsletter (if you are not a subscriber yet, subscribe here for free). Those who follow me know that the longer term target is at the 1.4100 area.
The Euro did not continue trading in extension, as it would naturally do (go back and study past years’ price action), but a lot of events are going on (i.e. war winds in Syria, FED to tamper or not quantitative easing, etc.). We could now see two potential scenarios unforl, with the 1st scenario being the most probable (see below picture):
Scenario 1. Price bounced off the 1.3110 area and now it has a target in the 1.3610 area, helping price into that 1.41 area of longer term target. This is also the high probability scenario.
Scenario 2. There is a possibility for price to continue lower and retest and break the 1.3110 area. We know that second tests are dangerous tests and price could keep sliding to test, for the 4th time, the 1.2880 area. For now this is an outcome we cannot remove.
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