After my target in the EUR/USD was met, we pulled back to 1.2650 and have since re-gathered upside momentum. I have re-done the count to allow for a larger upside move. The S&P 500 seems to be attempting a 740 double bottom as we currently trade 765 in the cash market. I am a bit cautious of relying on this EUR/USD-equity correlation too heavily, because it has become somewhat unreliable in recent weeks, but for today it seems to be intact.

Wave 1 minimum objective at 1.2863 has been met, which means we are looking towards 1.2964 at the 1.618 projection. I will be monitoring smaller wave structures for opportunistic trading opportunities tonight and will update my plan accordingly. For now, I am looking to buy a pullback toward 1.2800 with stops below 1.2740 targeting a move into that 1.618 projection objective.



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.