Thursday, January 05, 2012

EURUSD down move not just done yet!

This down move on EURUSD has been very difficult to count as per EWP rules and guidelines, at least I have found this to be very difficult. But the essence of EWP is to try and label the price moves in as many ways as possible and then select the count which satisfies all the rules and maximum number of guidelines. So as per my limited knowledge of EWP I have tried to label this down move on EUR USD, and unlike my earlier counts, this count suggests a DZZ forming on prices. The target for the wave [y] comes around 2500 levels by the guideline of equality, and it has already crossed the 61.8% projection mark of wave [w]. But there is another important level in between, i.e. of 78.6% projection of wave [w], that comes around the 2700 mark on EUR USD. This level also accommodates a possible ending diagonal similar to wave (c) of [w] in wave (c) of [y]. So I would refrain from calling an end to this down move yet, and would like to see some more clarity in patterns before forming a trading view on EUR USD.


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