The break above 137,85 opened for a move higher towards 140.50 near term. The current decline is most likely a minor wave iv. If we stay above support at 135.68 and the StochS indicator crosses over towards the upside we have a "Bullish slingshot" (A Bullish slingshot is when the StochS. Indicatore makes a new low in a uptrend, which the priceaction doesn't confirm). That type of signal is often followed by a quick and powerfull move (in this case to the upside).A break below 135.68 would give the impression of a finished wave C and call for further downside pressure.
The problem I have with the Euro moving higher...ahem..the dollar Euro trade is that the US dollar successfuly bounced off it's bullish trend from 2008. Also a very good hammer developed on the weekly chart.
ReplyDeleteBut with current dollar weakness by Bernanke and crew to rush the dollar debasement, which I believe is a long term China shakedown and the real reason for food inflation, weakness may continue.
((shrugging shoulder motion))
From the 1HR and 4HR charts, it looked to me that 1.3569 on 1/31/2011 was the start of the 4th wave and 5 waves up completed(perhaps) Thurs. Keeping an open mind though for those who see bullish counts. Also, what sort of convinced me was the trend line break on the 4HR chart, this trend line hadn't broke since(1/10) the start of the up move towards 1.3800's
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