Wednesday, May 20, 2009
It certainly appears that we are in "Wave v of C".
Sometimes it's a good idea to step back and look at the large picture. The chart above shows the channel we have been in since October of 2007. We are very close to the top trendline again.
I have been predicting that we would peak at 1015. That's above the trend line but fourth waves often break the trend line.
Elliott Wave Rules dictate that wave three must not be shorter than both waves one and five. Wave three was 103.34 points. The low of Wave 4 set on Tuesday was 907.68. Therefore 1011.02 is the highest level that would not break the rules for the current count.
Wave 1 advanced 95.67 points. If the fifth wave equals the first wave, (as is common) our target would be 1003.44.
So as long as we do not violate the peak of (Wave i) at 903.02, this count appears to be heading for a target between 1003 and 1011.
Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.
Posted by Robert Campbell at 07:58