Monday, June 22, 2009
It appears we have begun a solid down trend. Minor A and Minor B are complete and Minor C has almost finished (minute wave i). A 38% retrace of Intermediate A would take the price to 845 It could be that this is all Minor B will give us, but that seems unlikely because it's it's only a 7% drop.
A 50% retrace will take us to 811. As long as we remain inside the trend line created by Intermediate A to Minor B the trend will be secure.
As I've indicated in the above chart, I expect a bit more down side on Tuesday, and then a return to the support level 3 at about 904. This should provide an opportunity to add short positions.
There were quite a few trend lines that apex at Monday's closing date, and this may significant of a (minute i) bottom.
I've been experimenting with Andrews Pitchfork, and it also seems to indicate a bounce off the bottom trend line, and 904 appears to be about as high as we could go within the channel. Stochastics are also indicating a bottom is almost in.
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 18:47