FX.co ★ Wave analysis of the EUR/USD currency pair for January 6, 2010

On the whole, the EUR/USD currency pair picture became the same as we forecasted the day before. In fact, the price worked out the correctional level of 50% with ideal alignment of a and b waves. We could tell confidently about refreshment of the trend in favor of the US dollar, if the euro does not reserve the right of amplification the correctional structure. We are making such supposition, as the top of the correctional wave c did not reach the calculated level of the correction that can allow the price to form more complicated and lengthy structure in form of wedge or triangle. Therewith, MACD denoted the divergence, which may let renew the downward trend against the European currency.

Kindly regards,

Analyst: Alexander Dneprovskiy