Our 1.2660 EUR/USD price target dealt at the London open, without our 1.2738 and 1.2748 offers being done, as the market then embarked on a 120 point shopping spree to a 1.2785 high as we currently trade 1.2765. We had the right idea, but our entry contingent with our trading style is to command an entry price that is as close to support or resistance as possible, which allows stops to be a third to a quarter the size of our reward. The USD/JPY trade from yesterday achieved the initial target of 111.85, which allowed you the opportunity to book 40 points on a partial position and then trail the remaining stop to breakeven.

We are going to dig a little deeper into the EUR/USD daily chart this morning to see what we can uncover with regards to our current breakout trend. After playing with some time symmetry studies last night, I uncovered some EUR/USD tendencies, or rhythms, so to speak that might help us conceptualize what we are dealing with in here. Starting on the left hand side of the chart, as EUR/USD continues its descent from the 1.3660 high, you will notice two impulse selling waves in the direction of the trend, which is down. The first wave totaled 53 days to a 1.1850 low and the second push beginning at 1.2600 down to 1.1640 lasted exactly 52 days. The trend then reversed higher and began a 50-day march towards a 1.2324 high, followed by a pullback to 1.1850 area, which then began the next and current buying wave. Well guess what? We are now in our 51st day of the current up wave. EUR/USD's tendencies to trade 50-53 days in a single impulse wave in the direction of the trend are quite apparent. So we need to heed the warning that day 52, which is jammed-packed with economic data, is tomorrow.

A drop down to the 3-hour chart shows the current EUR/USD Elliott Wave count in the midst of Wave 5 targeting 1.2880. The total distance of Wave 1 projected up from the Wave 4 low at 1.2551 calls for Wave 5 to end at 1.2880. 1.2880 also happens to be the .618 retracement of the 1.3660 high to 1.1640 low. It's quite likely that price will have a difficult time pushing through the 1.29 handle on the first few attempts.

In the short term, price action should be jumpy into the New York close and through the overnight sessions as the barrage of economic data begins tomorrow morning in New York at 10:30 a.m. If anything, look for a EUR/USD pullback to 1.2740-20 as buying opportunities for a push towards the highs of 1.2790 and possibly a push to 1.272 Fib Ext at 1.2820. But remember, keep those longs tight to your vest as we are in day 51.

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.