The Euro could be on the verge of a major rally.
Last week close: 1.32517.
Close targets: 1.34275 and 1.38450.
Entry: wait for a minor pulback in the 1hour-30min chart.
This could happen at the opening on Monday.
SITUATION
The monthly chart below shows the completion of 4 major waves up (see the numbers in turquoise). We also completed 3 (of 4) cycles of 3.5 years in January 2012.
Besides, wave 4 (down) lasted about 36-37 weeks.
Furthermore, the chart also completed wave 1 and wave 2 (in white), being the latter part of a set of 5 waves developing within the boundaries of the channel in turquoise.
It might be hard to believe but, if this wave count is really correct, the Euro will start a good run to 1.57500 and 1.70000.
Note: currently, the Euro closed at 1.32517, meaning that it's now sitting over a the major supp/res (1.32500). Also note that all major supp-res appear to be set every 1250 pips.
The immediate target is the DiNapoli Confluence (K) at 1.38450. Note wave 1 and 2 (in white).
Note the green line in the daily chart below. It belongs to the channel of the weekly chart above. The Euro must breakout both them to be able to reach the confluences (K) at 1.34275 and 1.38450.
Finally, note the 6 waves up in the 4hour chart. This is a wave count that I use when it's hard to label waves. Typically, this is a set of 9 or even 13 waves up.
There could be a gap at the opening.
