OUTLOOK ON EURO/USD, Will it Decline Further ??

The steady recovery of DJ/ S & P 500 LAST WEEK have temporarily relieve the heavy Selling pressure on Euros, fueled by both BOE and ECB holding back their Bank's interest revision. However, the statements from ECB chiefs on the possibility of  Further topping up the 750B Euros Rescue Fund may cool down the current mild Reversal .

We do observe that Euro showed its resilience by breaking the Upper Resistance trend lines (hitting at 1.2153 highest.),, as indicated on both the below Chart A and Chart B., and if you look carefully over the Elliot Wave chart D, labelled V(1), it shows the recent rebound is rather weak, and the overall outlook for the EURO/USD is still very bearish and the downtrend  may persist for a few weeks.
The present wave V may propel the pair slightly higher in the week ahead,, pushing it near the  next immediate resistance at 1.2216 before resuming its decline and downtrend .

On Chart C , The Candle stick and Ichimoku Indicates that a break below 1.2074 (previous resistance) is needed to signal a top has possibly been formed and extend fall to the Ichimoku cloud top (now at 1.2035), break there would bring test of the lower Kumo (now at 1.1995), however, only below 1.1957 support would confirm correction from 1.1876 is over and bring resumption of downtrend next week.


So in a nutshell, the outlook for EURO/USD will be still bearish next week, , the currency pair may have  mild reversal up to the next resistace level 1.2216 before resuming  its downward trend,,, breaking below1.1957 will expose next low toward 1.1860(recent low)


So SELL ON  RECOVERY ( Near 1.2200) is proposed for week ahead

Chart A

Chart B

Chart C

Chart D

HAPPY TRADING