FX.co ★ EUR/USD wave analysis for January 18, 2011

The EUR/USD has declined further, supposedly forming a corrective structure of the 4th wave of the whole uptrend section. At the same time the price decreased by 120 pips and tested the estimated correction level 38.2%. In general this 4th wave looks quite complete at the moment, including wave set abc. Based on this we can expect resumption of the growth with likely retesting of the 1.3460 level. However, the price can still form a five-wave structure in the range of the current downside movement.