EUR/USD is hanging by a thread above 1.3440-area minor support. If broken, triggering stops should send rates down to the 216 point projected end of the current wave Y of (4) at 1.3389.

If we break down the internals of this final wave within (4&), we realize the distance of wave a of x, 144 points, projected down from the beginning of c of x, we arrive at 1.3387, only 2 points away from the larger W, X projection. A coincidence as nice as this will often serve as a price magnet. The one potential hitch in this plan is this morning's double bottom at the .618 projection at 1.3442. If we breakout through the 1.3745 resistance, we will have to label 1.3430 area low as the end of wave 4, and will switch gears to look for long opportunities in the newly forming wave 5 targeting a move above 1.3700.



For tonight, I am looking to get short between 1.3455-70 with stops above 75 for the breakdown through this morning's lows. I will cover the short at the figure, and look to get long at 1.3395 with a stop that risks half of my profits from the short position.



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.