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Thursday, October 14, 2010

EUR/USD - one more minor high should do the job

The decline since the 141.21 high, clearly isn't a five wave decline, it's clearly corrective in character and therefore only a minor wave iv, which should be followed by one more rally to a new high. As wave i and iii is equal in length, wave v should either be smaller (0.618 times wave i) or much bigger (1.618 times wave i). There is no way of telling which it will be. If wave v becomes smaller in should end close to 141.63, while wave v would end near 143.70 if it become much longer than wave i.

I do think the smaller wave v would fit the picture best, but with the extreme bearishness towards the USD currently, one shouldn't be surprised to see a rally to 143.70.

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