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• Forex: EUR/USD – Euro's upward spiral consolidates above 1.2860

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FXstreet.com (Barcelona) - The Hegemonic currency is about to tail off a triumphant session on Monday, after netting over 150 pips or almost 1.20% in profits, hitting an intra-day high at 1.2891 only to get a minor downside correction to 1.2865-70, actual price. Last time EUR/USD managed to post daily gains of such magnitude dates back to July 15, nearly 2 months ago.

The strong march upward took off early in Asia, aftaer a risk on environment favoured the search onto wider market corners, with the ultimately goal to own the highest yielding assets, resulting in a ebullient mood to lift -up global stocks and risk currency trades such as the Euro or the Australian Dollar, while the Greenback was harshly beaten throughout the session.

Fan Yang, Currency Analyst at CMS Forex said: "The market is likely to encounter resistance below 1.2950. A swing projection of the previous upswing targets 1.2930. There is a couple of scenarios as we following this consolidation. We could have had a zig-zag, and the quick decline to 1.2650 last week was an X or connector wave".

He added: "There are so many variations of consolidation according to Elliott Wave principles, but the 2 main anticipation should be for the consolidation to extend another 3-wave correction ( ABC ). The alternate count, is that the market had a D wave down last week, and is developing the E wave to complete the current consolidation. This is usually a primary anticipation if the consolidation is a triangle".

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