The Single Currency edged lower from $1.2395 to $1.2356 this morning undermined by the Fed minutes last night which carried a hawkish tinge for an early U.S interest rate hike. Market is now awaiting for the tone of the European Central Bank minutes, due today at 15:30(local time) for further direction on the pair.
As highlighted early on Tuesday, we were looking for a short term rally on the euro before a possible resumption of the downward trend. Based on current Elliott wave pattern, the bounce from $1.2215 last week is still looking corrective. The EURO might push for one more leg higher near $1.2415/20 before a possible turn lower.
However a break above $1.2475 will be favourable for the bulls for a run back to $1.2555(previous high on 16 Feb. 18)
Updated Scenario 1 posted on Tuesday. - Near term corrective mover higher before resuming of the downtrend!
Scenario 2: Unchanged! - Continued sideways consolidation in an Elliott wave bullish triangle pattern!
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