I am counting this move higher from the Sunday night lows as a complex wave .4 that should setup a move to new lows in wave .5. Our mission is to find the top of this wave .4 to get short for a return to the 1.2700-area lows. Ideally wave .4 should find resistance at the prior wave 4 highs of 1.2900, along with the shown Fib resistance 1.2857 and 1.2885. I am short one unit of EUR/USD at an average price of 1.2888 with tight stops at around 1.2915. If I am stopped out of the position, no problem, as I will be look to re-establish into Sell zone #2 at around 1.2950 with stops around 1.3000.



Todd Gordon is a Technical Currency Strategist and Fund Trader with GAIN Capital Group.

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