EUR/USD moved to a 1.3607 low on the session, which was a successful test of our 1.3620 zone. The resulting high was 1.3642, as we have now settled back into the middle of the range. I still believe EUR/USD should move higher, which sets up our opportunity to get short at the end of wave B at around 1.3720 for a move through the lows of wave A.

You might be asking yourself with 100 points of room to the upside, why we're not setting up long trades to capture some of it, and it's a logical question. I believe we are extremely late in the trend of a weakening US dollar, and it's very likely we have already seen the low. If this is the case, trying to get short dollars on a bounce to higher-low (again remember I'm talking in terms of USD, not EUR/USD) before the real move up is getting a bit too tricky.

So for now, I am leaving offers to get short EUR/USD at 1.3710-20-30, with stops for everything just above 1.3740.

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.