DY: Dollar Decline is Corrective and May be Complete
The US dollar decline appears corrective across the board. Expectations are for the greenback to end the month and year on a strong note.
The EURUSD rally from 14215 is viewed as a corrective 4th wave that is nearing completion. Common end points for 4th waves are the former 4th wave extreme, which was reached last night. Expectations are for the pair to roll over and for price to drop to a new low. The 161.8% extension at 14015 is an objective. Another area that could provide support is the 38.2% retracement of the advance from 12450 at 14120.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
