I took a light stop in EUR/USD last night and had to readjust the count. I moved the entire price leg down in EUR/USD to one higher degree, which means we are now working off the excess of a blue underline wave 2. This wave should top out around 1.3100 before pushing lower in wave 3 below the 1.2700 lows . This is my directly bearish count, but more about this in a second.

A quick word about the current market. You might have noticed that I have been pretty quiet during this entire EUR/USD move lower and for good reason. On the larger intraday time frame ( 180-min chart) I am actively monitoring two vastly different, yet completely valid, wave counts. One says we're going higher and one says we're going lower. Yep that's right folks, we could go up or down from here. Thanks, right? But don't take my lack of conviction as a lack of confidence. I simply don't have an opinion in this current environment, and judging from the air-tight price ranges we're seeing in here, I am rather confident analysts employing other analytical techniques don't either. Anyone can say the market is headed here or there, but do they have the position on is the question you should ask. On the bigger time frames the outlook is unclear. But with ECB and NFP just ahead, I am sure we will soon be graced with the gift of clarity. So until such time, we must wade in the shallow water and trade what we can see.

And what I can see is a solid sell zone that is valid on either of the bigger picture wave counts. I am offering a half unit of EUR/USD in two spots. All together I will put out the first order to sell a half unit at 1.3080, if done buy stop at 1.3155 against a 1.2940 take profit, and the second is order is to sell a half unit at 1.3105, if done buy stop at 1.3125 against a 1.2905 take profit.



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

Disclaimer
The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.