Apologies for the late update, I took a hard look at the charts this morning and made a few changes to our bias. The EUR/USD pullback from the 1.3360 high looks to have another push lower before completion. The .618 retracement of the wave 3 falls in just below 1.3000 at 1.2990.

Moving down to the 30-minute chart, we see that within this last corrective leg of wave 4, a 2.618 projection will have this 5-leg push within Y finishing up at the same .618 retracement level at 1.3000. So for now, favor a move lower to test 1.3000.

USD/CHF tells a similar story of a bit more Dollar strength before the resumption of the longer term trend to the south. 2.618 extension of wave B paints the picture of a 1.2280 top for C. Notice C breaks down into 5 waves increasing our conviction that is a corrective pattern. Not shown, but wave A carved out 5 waves, wave B showed 3, and C looks to be moving in 5 for a 5-3-5 correction before another 5 waves down .

A closer look at the last 5-wave up shows the Fib extension level described above, as well as equality of waves 1 and 5 at 1.2280.

There is enough room to get into a pullback long trade in the 1.2225 zone for that 5th wave ride up to 1.2280. Stops should be just below 1.2200. Further, if you gain some profit from this trade, go completely flat at 1.2280 and flip your position at 1.2280 with stops above 1.2300 for an early entry anticipating another 5-wave move lower. Back tonight with an update.

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.