Wednesday, September 8, 2010

It's now or later

Wave 1 extended a bit lower but it's still only wave 1. It's expected behaviour when in a wave 3. Small corrections are also common, so keep in mind that this wave 2 could be finished at this point. It's no garantuee however, wave 2 could take more time and finish higher but price should stay below the trendline resistance.

Geplaatst door op

2 comments:

  1. JAPOSeptember 8, 2010 at 10:04 PM

    Hi,

    I regularly read your blog about the EURUSD chart. I think that a new high may appear before the so-called 3 of 3 down (if it will exist...).

    Right now, I think it is doing an ABCDE rising wedge since the low in the 24th August. Then it may crash!

    Do you think this is likely to happen?

    ReplyDelete
  2. Jeremy DemunterSeptember 9, 2010 at 1:34 AM

    Hello Japo,

    It is certainly possible that EurUsd has more correction in it. The 3 waves up i have labelled as a finished wave 2 could be just wave A of 2. Price following the 3 waves seems impulsive to me which would mean the downtrend has resumed. I'm not sure about the wedge you're talking about, i don't see where it would fit into the bigger picture. Diagonals happen at the beginning or the end of impulsive or corrective waves, wave 1, 5, A or C. It's not possible to count it as a triangle either.

    Friendly greetings,
    Jeremy

    ReplyDelete

Subscribe to: Post Comments (Atom)