EUR/USD tried and held the 1.3345 trend channel support today. Until broken, we need to continue being dollar sellers. Sterling has also held a similar uptrend support at 1.9600 today, after a brief visit below the support level. I believe this move lower from 1.9809 is a complex A-wave correction that just this morning found support from the .786 retracement of wave 5, as well as the month-long uptrend channel.

Corrective wave B can be expected to unfold in 3, similarly sized legs targeting the .618 retracement of wave A at 1.9735. Then, 5 more waves can be expected to complete corrective wave c of primary wave 2 before a powerful wave 3 emerges.

For tonight, we are bidding for Sterling between 1.9605-25 with stops below 1.9585. The initial take profit and stop move level is channel resistance at 1.9650. The final target will be the afore-mentioned .618 retracement at 1.9735.



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.