After trending for about 3 weeks, Euro has been consolidating sideways in what is potentially minute wave iv of [1].
While minute[1] itself might be complete at just above 1.42, the odds favor a lower low below that, before minute [2] counter trend rally can unfold.
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What u mean is!
Strong resistance lies in $1.44 region?
May i sell below $1.42 region!!!
Comment by Dinesh — Sunday, January 3, 2010 @ 22:19
Where wave v ends (and so minute wave [1]) is currently a pure guessing game. But once wave v ends, a counter trend rally is perhaps the best opportunity to be positioned for the larger degree minute wave [3] decline. Wave 2s could retrace a large portion of the previous wave 1, but since we are in wave [3] of 3/C, it could turn quickly and accelerate away. So I would not try to time this to perfection, but rather focus on risk control, since the risk : reward ration would be favorable when looked at a potential trade that is held for many weeks (almost months) from wave [2].
Comment by glonk — Sunday, January 3, 2010 @ 23:04