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Wednesday, April 6, 2011

EUR/USD - Topping!

First lets take a look at the daily chart. We are currently "fighting" with the downtrend from 160.38. Even if we get a break above it I will only have to dismiss the above count if we see a break above 146.95. I do count the decline from 160.38 as an diagonal in which case wave D can't be longer than wave B, which allows for a move towards 146.95, but not above.
Zooming in on the last part of the rally from 128.71 is in its final stages. The question whether we will see the top here or we will need a move closer to the channel resistance near 144.25. As wave iv and (iv) didn't break below the support-line I wouldn't expect wave v and (v) to break above the resistance-line. It could but doesn't have to.

I have changes my micro-count in regards to wave v. The direct break above 143.00 aborted my previous count and the above count seems to fit the picture better.


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