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Wednesday, July 15, 2009

I'm going to propose this next scenario with the hope that you will simply challenge me on it. I can find no rule that would be broken. Let us say that this Reverse_Symmetrical_Triangle is wave 2. It ends at 62% retrace of one. It would be unusual to be sure but I can find no rule that says this is not correct. Next move is wave three down. I'll be honest I did not see this by myself. I saw it somewhere else and tried to find it again but I forgot who showed this scenario to me.

It's too bad we gapped up this morning. I was hoping to see if that Wolfe Wave was going to work out.

Yesterday I said the daily Kumo would offer resistance. I guess not, we blew through all the stops today, even pushing past the R3. Ichimoku has given the bullish buy signal, and the head and shoulders gang are all saying it's over.

Of course a pull back in both the Euro and stocks can be expected, but I'm still looking for a lower low. I really will not know if I'm right about the Euro Triangle until it's over, so I may take what I can salvage after a pull back; but I'm going to be ready to jump back in, or not bail my bear position at all if it looks like the Euro is going to take us down.

Just to be clear if we continue to advance I'll be the first to switch camps. This is as far as it can go! Right now the Euro is declining at about the same angle it advanced over the later part of the day.
I will not lie. This chart is very encouaging to me.

Analysis presented on this blog has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

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