The U.S. dollar sold off on June 13 and 14. But around noon on Monday, the EUR/USD reversed from its intraday high of just over $1.23 and gave back about half the gains.
From an Elliott wave perspective, what stood out about the dollar decline was its corrective structure. The editor of EWI's Currency Specialty Service Jim Martens picked up on that in a Monday morning intraday update:
Market Insight (Intraday)
Posted On: Jun 14 2010 9:41AM ET / Jun 14 2010 1:41PM GMT
The dollar remains soft [but] the setback does not look impulsive and has reached the heart of the prior fourth wave. Turning to the individual markets…
-- ...Relative to the yen...the setback from 92.90 is in three wave…typical for corrections.
-- Relative to the loonie…the structure remains consistent with a corrective movement.
-- ...Relative to the Swiss franc…[the move] has retraced 38.2% of the prior advance…
-- ...Sterling strength...followed a corrective path. I cannot count the move as a "five."
-- The euro's recovery is equally non-impulsive. ...the euro remains vulnerable.
Shortly after this intraday update was published (at 9:14 AM on June 14), the EUR/USD eked out another high, reversed and ended the forex session near $1.22.