Tuesday, November 1, 2011

EURUSD final rally above 1.4000

The EURUSD appears to be catching a bid near the area of the previous 4th of a lesser degree. This leads me to believe that we will see a final Wave C Green which should make highs above the top of Wave A Green. I favor this outcome as long as the 61.8% retracement of the move from Oct 3rd to Oct 26th (around 1.3565) holds as support. However, it is possible that 1.425 is the end of the correction. If that is the case than we still have 5 waves complete, and can expect a corrective rally. In either case I expect higher short term prices.