Tuesday, February 16, 2010

EURUSD...3rd wave?

The EURUSD move down has certainly been relentless and now looks like we have 2 legs down.  The 2nd leg is just a little longer than the 1st leg so likely that it is a 3rd wave down BUT has it finished?  A break above that descending trend line may be first warning that choppy trading lies ahead if we go into a wave 4.

BUT also wave 3 may extend down a 1.618 x wave 1 would bring us to 13074 approx.  Could be, especially if sentiment at the moment is looking for a bottom in the EURO and ALSO equity mkts.  A continued fall would tie in with some more equity weakness before a more pronounced bounce.

EURO 4 hr chart

Look at yesterday's post for cable chart , if it breaks down likelihood is that Euro will also go down

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