The bigger pictures - Still all the same

Just wanted to show you the bigger picture, as you can see the are all the same.



Since the top at 1,129.24 we have had a clear five wave decline as wave i a equal clear three wave wave ii and are now heading down in wave iii. The first sub wave of wave iii (not shown on the chart) is also in five wave and expect sub wave (ii) towards 1,078-1,080 clearly being in three waves too.



When wave iii down really takes hold it will be speedy, violent and relentless.


Wave 2 is clearly over and we now have a minor Shoulder/Head/Shoulder top with a target near 121.80, but as this too is a third wave it too should be speedy, violent a relentless. Minor wave ii became subnormal, which is another clue, that the EUR is very weak at this point.

Again we are in the early parts of wave 3 down. The AUD is clearly stronger than the EUR, which can be seen by the corrections, reaching slightly above the ideal 61.8% retracement targets, but that can change very quickly as wave 3 progresses. Just take a look at the decline in 2008 (not shown here).

Finally we are beginning to see some action in USD/CAD cross too. It has been a very tough call, but today's break above 104.94, was the first hard evidence that a firm test of the key resistance at 108.59 is in the making. I would expect it to break easily for a quick run towards the 114-115 area, but as I said this cross has been a tough call.

The speed with which the EUR/CHF is falling, has surprised me, but it doesn't change the call for a move towards 129,56 as the first target, but I still think that we will see 127.35 too. As we approach that later target be careful as that might be the very end of the decline from 151.49.