EUR/USD Possible Bearish Move Today - December 13th, 2012

After a last week in a bearish movement, the EUR/USD pair started pushing higher this week. Big question is where can we can expect Dollar to start pushing higher again? We got prepared for today two wave counts that will help us to determinate possible resistance point.

EUR/USD Possible Bearish Move Today?
According to Elliott rules B wave usually retrace 50-61.8% of the corrective A wave.

According to alternation count the EUR/USD pair is currently at the end of the 1 impulsive wave of the bigger (5) wave and in this count too we are expecting to see drop in this major pair soon. We know that  wave 2 often retrace 50-61.8% of wave 1 so if we measure possible targets we would get same targets like we get in the Primary Count. So we need to wait for 2nd wave  to broker lower channel support line at 1.3020 level so that we will have confirmation for entering a short position today.



Fundamental View

Today News from European union showed positive results but we still need to take a look at  news coming from the United States:

- Import Prices m/m
- FOMC Press Conference
- Crude Oil Inventories
- 10-y Bond Auction
- FOMC Economic Projections
- FOMC Statement

This news can impact to our wave count and change our count completely.

Support and Resistance

(S3) 1.2865 (S2) 1.2896 (S1) 1.2951 (PP) 1.2982 (R1) 1.3037 (R2) 1.3068 (R3) 1.3123  

Final Conclusion  About EUR/USD

The EUR/USD finished the development of the corrective A wave and we are expecting to see the price drop today when development of the B wave begins. Potential Targets can be set at 1.2961 (50%) and 1.2941 (61.8%), for Stop loss we can use resistance at a level of 1.3080.