There were no new devastating reports out of Europe to explain the euro's weakness.
Nor good economic news from the U.S. to explain the dollar's strength.
Nothing other than the "eurozone worries "…which, frankly, have been with us for what, two-plus years now?

In other words, market fundamentals failed to give FX traders a tell-tale signal that a drop to a new low was imminent.

At least one technical analyst did see the drop coming in his charts and alerted his readers to the move with enough time to act.

Update For: Wednesday/Thursday, July 4/5 Posted On: Tue, 03 Jul 2012 14:57:51 GMT EURUSD Last Price: 1.2605

[Topping] The impulsive but incomplete decline from near 1.3500 and the corrective recovery during the first three weeks of June dictate a bearish outlook. From below 1.2744, and ideally below 1.2693, the euro should resume its decline.

(Excerpted from Jim Martens' Currency Specialty Service, provided by Elliott Wave International.)

EWI Senior Currency Strategist Jim Martens is one of the most sought-after FX strategists and trading instructors in the world. His technical, Elliott wave approach to the FX markets has been featured in numerous forex publications including ForexPros, FX Street, Trading Stocks and others. Jim has spoken at several trading events including The Traders Expo and Traders' Library Trading Forum.

Take this unique opportunity to learn from one of the world's top FX strategists. Follow this link to reserve your seat for his free webinar now. Happy Trading,

About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world's largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private investors around the world.

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