It has been some time since we have visited the EUR/USD cross (acturally it was on January the 15, where I expected a decline to 140). This target was hit a broken for a very short period of time in overnight trading.
No doubt that we can count a five wave decline from 145.81 (top of wave 4 or maybe this top was wave 2 of a higher degree?). No matter which of the two counts is correct, a short bounce to at least the 142.00 - 142.20 area will be seen. If we saw the ending of black circle wave 1 overnigth, then we will see a much bigger correction, which should at least reach the top of wave 4 at 145.81.
BUT someting doesn't look quiet right with the count ending black circle wave 1 at 139.37. After looking at the USD/CHF cross what I counted as wave 4 in the EUR/USD pair became much to deep in the USD/CHF pair, and can only be counted as a black cirkle wave 1 and 2, which means that black circle wave 3 is ongoing. So I'm every tempte to make my alternate count my prefered one instead. But lets see how the correction from 139.37 plays out.
Above the minor wavecount for EUR/USD, showing a nice five wave decline from 145.81 to 139.37.
First the long term picture of the USD/CHF cross, which is now calling for wave [C] to at least the 128 - 132 area.
Above the shorter term picture of the USD/CHF cross, showing clearly overlapping waves, which tells us, that this can only be a serie of wave one's and two's and therefore the ongoing rally must be the start of wave three calling for much higher levels before ending. A more likely ending point for wave 3 could be close to the 117area.
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