Hi Traders,
As I said in my previous newsletter, the Euro bounced back a bit and then resumed the downtrend, probably to the 1.20-1.18 area and below.
THE ELLIOTT WAVES
The monthly chart reveals that the Euro is unfolding a huge a-b-c retracement wave (since July 2008) where the last leg (wave-c) is supposed to be made out of 5 large waves down.
Four of these five waves can be observed in their entirety on the monthly and weekly charts. Their deployment is complete.
Conversely, the formation of the fifth wave down has just begun, as you can see in the daily and 4-hours charts.
Besides, the weekly and daily charts display clearly the large a-b-c that formed wave-4, which in turn, is one of the large five waves above mentioned.
CONCLUSION:
Given the particular pattern, the Euro might take a sharp dive well below 1.20-1.18.
Monthly chart, click to enlarge
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
As I said in my previous newsletter, the Euro bounced back a bit and then resumed the downtrend, probably to the 1.20-1.18 area and below.
THE ELLIOTT WAVES
The monthly chart reveals that the Euro is unfolding a huge a-b-c retracement wave (since July 2008) where the last leg (wave-c) is supposed to be made out of 5 large waves down.
Four of these five waves can be observed in their entirety on the monthly and weekly charts. Their deployment is complete.
Conversely, the formation of the fifth wave down has just begun, as you can see in the daily and 4-hours charts.
Besides, the weekly and daily charts display clearly the large a-b-c that formed wave-4, which in turn, is one of the large five waves above mentioned.
CONCLUSION:
Given the particular pattern, the Euro might take a sharp dive well below 1.20-1.18.
Monthly chart, click to enlarge
Weekly chart, click to enlarge
Daily chart, click to enlarge
4-hours chart, click to enlarge
