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Tuesday, October 26, 2010

EUR/USD - The minor waves still look impulsive

The possible wave 2 already ended at 139.82 and the following decline also show impulsive characteristics. As can be seen the count since 139.82 is of one lessor degree than wave 1, that's because I would normally expect wave 3 to extend. The first part of wave 3 isn't even as long as wave 1 and that should be the absolute minimum to expect. Therefore in the short term I'll look for a minor correction towards the 138.77 - 138.91 area, before the next leg lower in wave iii of 3.
As this is "just" wave ii of 3 it might extend higher towards 139.21, but shouldn't correct much more than that.

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