EUR/USD

Wave/Diver,

If this latest leg up on the 5m chart is a wave C - am I correct in saying that it should target (approx.) 161.8% of wave A from the low of wave B?

Therefore giving a target of 12880 (which so happens to be the previous high?

Obviously the above is rule of thumbs and has to have a degree of flexibility - but is that roughly how it works?

Hi Diver - interesting thought, however.....

i think your AB is the correct labelling, cant see this being a potential wave 3 up or 2 complete.

if your counting the move up from 1.2 to 1.3, i cant see the 5 waves up to complete a 1 (your B ) - it would make 3 the shortest of the 5 wave impulse tbh honest i'm struggling with that....

imo the move up to the 1.3's from 1.2's is clearly a corrective 3 wave move up and perhaps from 1.5 - a 5-3-(5? in play) sequence maybe a better fit ? prefer your initial count...kind of fits in with current situation - the expected capital flowing out of eurozone after the cyprus stealth tax debacle and dollar strengthening.

rgds WS

First, please ignore the labeling on this chart: the only accurate part is between a and b; even the a and b may well be wrong:) There is a strong chance the b wave is actually wave 1 and the retrace to yesterday is wave 2. Which would make the current data the start of wave 3. Obviously there is no confirmation of a breakout just yet so it's a bit 'wait and see', but, if I am correct then gclark25, you could be riding a beautiful wave

gclark25 wrote: Plan on staying long for the duration of tis trade - although may take 2/5ths off on the 49sma and the rest off @ the 200 sma if it reaches it rather than the oblique resistance channel (Feel it could be a bridge too far and would be happy with ~50 pips total.

Took 2/5ths of trade off @ 49sma level on the 1H timeframe.

In the case of a 49sma break, I will let the rest run if it does not break back down below it.

if it gets to 900/936 be worth a short there with 30/40 pips stops - target the lows 700's and then 670's fib level there too.

WaveSurfer wrote: should get a run up on this going into the draghi /ECB press conf on Thursday...watch that bear flag...n drop, flag.... drop, flag ....there's a pattern developing.

dl.dropbox.com/u/40497882/Eur_usd_H%26S_downtrending.JPG

should get a run up on this going into the draghi /ECB press conf on Thursday...watch that bear flag...n drop, flag.... drop, flag ....there's a pattern developing.

dl.dropbox.com/u/40497882/Eur_usd_H%26S_downtrending.JPG