Euro the Down is Finish at 1.1899???

Discussion in 'Forex Trading' started by torosyososfx, Oct 10, 2005.

  1. Euro the Down is Finish at 1.1899???

    After touch the floor in 1.1899, a strong up took place. The last leg down 5 or ((a)) have the same length than the first leg labeled as wave 1 or ((a)) as shows the daily chart (this happen when the third wave is an extension). But is the downtrend really finished, or the past week strong recovery of the euro is only a correction. If we see the candles of the past week, we can find a star and an engulfing, as signals of change in the trend, and the stocastics in the daily chart shows a bullish divergency during the development of this last leg.
    The Blue couting shows a wave (A) finished with a fifth fail, it means that the wave couldnt to establish a low below the wave 3 bottom. The strong recovery and the break of the 20 days MA, are signals of a possible reverse in the trend and the beginning of the wave (X). The first wave A is on way, and the first subwave ((i)) is being retraced by ((ii)).
    The Red counting shows a wave (X) flat in progress, where subwave B is on way. The first leg ((a)) is finished and is being retraced by ((b)), possible finished in 1.2205.