The EUR/USD has rebounded off the key 50% retracement level at 1.26 to highlight the possible completion of a 5-wave down-move off the August high. While 4-hourly bullish diverging studies hint of a period of base building, reclaiming the key 1.2732 swing low is required to confirm that a substantial intermediate low is in place. This would then suggest a 38.2% retracement recovery to 1.2870 that roughly equates to the previous 4th wave peak, a common Elliot Wave target. Meanwhile, an inability to regain the 1.2732 pivot confirms the near-term bearish structure and would put the 50% retracement support in jeopardy.
STRATEGY: LONG USD/JPY at 84.88 stopped at 84.88.
(REVISED) LONG EUR/USD at 1.2639, risking 1.2684, targeting 1.2732, 1.2870
LONG S&P 500 at 1056 risking 1025, targeting 1100, 1217
