The Euro continues down but it should not penetrate much lower before stopping and reversing.

   Momentum is converging between the new low and the old lows last week showing there is a high probability a rally will ensue once this slow decline has completed.

   The most probable Elliot wave count is that we are in a wave 4 expanding flat, with wave B coming down now and wave C up still to come. After C has rallied up – probably back up to resistance at 1.29, prices should unexpectedly roll over and make new lows, reaching possibly to the 1.23s.

Analysis prepared by:

Joaquin Monfort
Forex4you analyst