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Tuesday, January 18, 2011

EUR/USD - A possible longer term count

It might be worth stepping back a bit from the micro-count, trying to put the latest price-action into the bigger picture.

The above count could explaine the messy decline from 160.38. If this count is the rigth one, we still need one more decline below last years low at 118.75.


Zooming in on the last part of this decline. we can see that the decline from 142.81 came in three waves. The price-action since 129.64 looks like an expanding flat correction, where a rally towards 135,94 still is needed to end wave C of the expanded flat and then we should see and impulsive wave C down below 128.71 and 118.75 longer term.

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