Euro Surges to 1.45; Beware of a Pullback

Daily Forex Technicals | Written by DailyFX | Sep 18 08 14:44 GMT |

The EURUSD broke through 1.4485 and higher prices are certainly possible from here. The bullish outlook is now intact as long as price is above 1.4071. EUR/USD The EURUSD broke through 1.4485 and higher prices are certainly possible from here. The bullish outlook is now intact as long as price is above 1.4071. However, the EURUSD is vulnerable to a correction back to the 1.4276-1.4402 zone in a small second wave. The alternate treats the advance from 1.4071 as a C wave that may be complete. USD/JPY Evidence that favors bears… 1.) The rally from 95.72 is clearly corrective (3 waves). 2.) It is possible that the drop from 110.65 is a series of 1st and 2nd waves. If this is the case, then the decline will accelerate and the USDJPY will tumble in a 3rd of a 3rd wave soon. This outlook is intact as long as price is below 106.74. GBP/USD The rally from 1.7729 may be wave i of 3 (or C). Similar to the EURUSD, the GBPUSD is vulnerable to weakness into the 1.7938-1.8068 zone (Fibonacci zone) before strength continues. As mentioned yesterday, the targets going forward for bulls are at 1.8430 and 1.8878. These are Fibonacci extensions of the 1.7443-1.8133 rally. USD/CHF As long as the USDCHF is below 1.1117, our preferred count is that a 3rd of a 3rd wave is down towards 1.0659 (Fibonacci extension). USD/CAD There is no change to the USDCAD analysis. “The USDCAD reversed at a Fibonacci confluence (61.8% ext. of the .9055-1.0378 advance and 61.8% retrace of the decline from 1.1875 to .9055). We have been expecting an important top to form. That top could be in place just above 1.08.” AUD/USD The AUDUSD may have completed and ending diagonal at .7799. If this count is correct, then the AUDUSD would probably return to .8750/.88 (we can't be sure about how long it would take since we do not know what kind of corrective pattern would unfold). NZD/USD A countertrend move back to the .7200 area or higher is probably underway. This level intersects with the underside of a former support line that was broken in August. Price should remain above .6553. DailyFX Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources.