This is one of those bitter sweet days that occasionally, yet inevitably, happens in my dual capacity job. On one hand I get a gold star for my analysis that EUR/USD would top out below 1.3100 and head back down to 1.2900. But on the other hand I get a red “X” mark for blowing the trade tactics. We missed the 1.3080 entry by just 10 pips before EUR/USD collapsed 175 pips to our final target. Really would have liked to grab that one for the asset management program.

Anyway, here is how I am counting that bloody EUR/USD implosion from last night. I think black wave 1 should put in a tradable bottom after 5 waves down (underline blue Roman Numerals) at around 1.2775 before bouncing higher in 3 waves. I am going hop on the bid down here at 1.2775 for a half unit with a sell stop at 1.2747 against a 1.2895 take profit, OCO.



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

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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.