Wednesday, October 27, 2010

Triangle in a channel

There are a few possibilities at the moment for Eur/Usd. Here is just one of them. The reason i picked this count is because of the triangle. There's a small wave (circled on the chart) that doesn't look like it can be counted as 5 waves, it counts better as a corrective wave which would mean it's part of a bigger correction, a triangle. Maybe this is a wave X and 1-2-3 = a-b-c (W) or maybe it should be counted as an impulsive wave anyway, who knows? We'll have to wait and see, but there's a nice channel down and a contracting price range setting up for a breakout, we will know more when this breakout occurs.

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