Wednesday 2 June 2010
The move down in the Euro has been persistent. Notice was made of the
length of the last two waves down that reminded us of a technical tool that
sometimes has validity. A directional move can reverse when there is a
mathematical relationship between waves. You can see from the chart below
that the length of the move down, labeled A, is 16.64. Subtract that from the
high of wave B, 138.19, and equality between the waves would exist at 121.55.
The current low of wave B is 121.40; close enough for the purpose of the
comparison.
What we are looking for now is a set-up to confirm that a potential counter-
trend rally may ensue. If one does not develop, no harm, no foul.
