EWF Daily technical video 7.13.2012

US Dollar Group: EURUSD decline from 1.2692 is unfolding as an impulse and we have already seen 3 waves down. Wave (iv) completed @ 1.2334 and a new low is required to complete a cycle from 1.2334 and 5 down from 1.2692. Expect a 3 wave pullback after that which can reach as high as 1.2400 – 1.2450. ALT view suggests 3 wave decline from 1.2745 is wave B of a FLAT correction from June 1 low. There is no supporting price action for this possibility yet. GBPUSD stabilized after a brief spike below 1.5416 (c = a). While below 1.5485, there is scope for weakness to extend to 1.236 fib ext (1.5344). Cable is also showing a 3 wave decline from the secondary peak. Price action favors the idea that this decline is wave B and pair will make a new high to complete the correction from 1.5267.  A break and hold above 1.5570 – 80 resistance will add conviction to this view. USDCHF rally from the recent low is unfolding as an impulse with final leg underway. A new high is expected to complete the move, resistance lies between 0.9882 – 0.9900. Below 0.9765 is needed to suggest that a 5w move from 0.9462 has completed. A 3 wave pullback to about 0.9650 – 0.9700 will be expected after that.  USDX wave structure suggests wave (v) is extending and possible upside targets are 83.94 and even 84.26 in case of aggressive strenght. This should result in a 3 wave corrective pullback which can reach as low as 82.60 – 82.80 before support comes in.

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