I will be targeting a test of the support levels shown in charts.
Weekly Chart
The preferred Count is that the rally from 0.600 is still in progress. Meaning we are still in an uptrend. Currently the abc correction, is what I believe could be the 4th wave. 4th waves are known to be choppy and lengthy.
Those who have been following me, should know by now that I am a firm believer that Correction not only happens in Price but in Time as well….
The pair has been rallying since Oct’2008 till July’2011 – 2yrs 9months.
A 50% to 61.8% correction in time, would mean that the current downtrend which started in July 2011, would be expected to end in Nov’2012.
Hence the preferred strategy is to sell at resistance and only look to Buy the pair sometime between Late Oct / Early Nov 2012.
I sold the pair last week at previous support now turned resistance… a break above the daily 200SMA could send the pair to next resistance at 1.0380
Alternatively, what I am looking for is follow through for a risk averse scenario into next week. First target is at 0.9955, Second target at 0.9860 (Daily Chart below will show you why I picked those levels)
Daily Chart
Next, Eur/Usd, Gbp/Usd and S&P500 Index…
Have a Good Trading Week ahead.
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