After a few days of a bullish run on Eur/usd it seems we will see a biggest daily loss since May 23rd.

Market reversed from 1.47 region just ahead of the significant 78.6% retracement area, measured from 1.3968 lows. In fact, we can see that prices are trying to move back below 61.8% retracement level as well, which would be quite a bearish signal on Eur/Usd for the rest of the week.

From an Elliott Wave perspective, a bearish aggressive outlook is still possible, but nothing is confirmed. You never know how the market will trade, but what we know is that we need a catalyst for a push in either direction. And that definitely could be the ECB press conference tomorrow.

A further sell-off tomorrow, after the conference down towards 1.4460, will definitely be a very strong evidence of a top in place! In such case, traders should focus on more weakness on that pair, especially now when stocks look really bearish across the board. In such case, we believe that USD will still tend to react as a safe-haven.

Well if Mr. Trichet will be hawkish, and if 1.47 is out, then 1.49 and even 1.5 will be in view.