I'm back from vacation and aside from the jetlag, ready to go. The markets have been mostly quiet. I am inclined to believe we will see a stronger dollar. Our focus level for now will be the combination of trendline support and the .618 retracement of the latest C-wave up at 1.2820. Should this level give way, EUR/USD could be in for some trouble. This is my preferred daily wave count that is calling for a C-wave move lower in 5 waves beginning from the 1.2820 break.

We broke down through minor uptrend support channel this morning that is showing some similarities from the previous channel break in early January. Ahead of 1.2820, we are going to look to get short on a retest of this morning's break at around 1.2950, also the daily pivot point. Initially, keep your stops to around 1.2980, and then move them down to breakeven on a retest of this morning's lows at around 1.2915.





Daily, Weekly, and Monthly Pivot Points



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.