This Sunday night's move above 1.2900 in the EUR/USD appears to have completed a 5-wave push, and price is correcting itself in textbook Elliott Wave fashion with a A-B-C move lower. Leg 5-A to Leg B-C, or more simply Wave A to C, will be equal in distance at 1.2835. Depending on what time price breaks lower to 1.2835, the parallel channel will likely be right there to add further support at the exact Wave C projection price. In other words, we're on the bid at 1.2835.

A closer look on the 13-minute chart shows that Correction Wave A-B-C is also a Gartley buy pattern at 1.2835, just to sweeten things a bit for you. Stops should be below the 1.2800 handle and your initial target should be the .618 retracement from the top of 5 down to C, or 1.2880. If 1.2880 deals, look to scale out of anywhere from one-third to one-half of your position and trail the stop higher, or to cost, to give you a risk-free trade for a move back towards Sunday night highs at 1.2910.

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.