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Tuesday, July 27, 2010

EUR/CHF - The small correction is becoming more complex

The correction from 130.70 has become a complex correction. The break above 136.75 has turned the correction into a double correction. I'm looking for a double zig-zag where we are currently in wave A2, then we should see B2 down and one more rally in wave C2.

Wave A2 is most likely to end near the 138 are. As it looks like a small five wave rally from 133.40 is almost done. The rally from 133.40 to near 138 has been a five wave rally telling us, that we a looking for a second zig-zag higher.

If Wave A2 ends near 138 we should see wave B2 down to the 135.15 - 135.70 area and then one last rally higher in wave C2 to 139.75 -140.15 area.



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