EUR/USD Elliott Wave Update

The EUR recovered to 1.4423 after my last comments and the outlook deteriorated steadily until it reached supports around 1.4150. Earlier today we saw a minor but unsustainable breach of that support. But the damage is done. That we breached the support is less significant than the fact that we have finished a 5 wave downmove. As you know, if a move BEGINS with five waves, then that is not the end of the move. So, while we should expect a recovery back to prior wave 4 around 1.4420 (see my previous post), the underlying sentiment (technically speaking) is decidedly bearish. This means exporters to Europe should cover on the next rally, while importers can breathe a bit more easily than they did when Euro was trading near the highs recently. For traders, though, the market is a fair game on either side. Just choose low-risk levels and go with the direction that Elliott Wave Analysis points you to. Good luck.