EURUSD

On the weekly time frame and according to long term trend as shown on the chart, after ascending the price from 1.2042 on 22 June 2012, climbing to 1.3993 on 4 May 2014 has happened which has been done in 3 waves that reacted to yearly time pivots. After the price failed to break yearly resistance 1, we saw downward rally which in other word yearly pivot is broken below at 1.3409 which overlaps with the time pivot on the chart and after that yearly support 1 at 1.2926 was broken below. The decline is expected to continue up to YTS2 time pivot on May 8^th, 2015 and the next target will be support 2 known as YS2 at 1.2262 which coincides with Fibonacci %88 which is expected the price to continue as well. So, it is advised to look for short opportunities on medium and long term scales. And for short term it is expected to have a wave formed according to a five wave on lower time frame which the current range could be an end for the third wave and a beginning for the fourth wave. So, due to the fourth wave which is in a form of correction, it is advised to the traders who are taking long positions to be careful of severe volatilities during this wave.

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