Wednesday, November 4, 2009

USD Retreats From 77.50

The USD ripped up very early Tuesday morning, looking like a 3 wave, touching 77.50 , before immediately selling off. It has ALMOST retraced the whole move up that took place Mon. night.


Is that thrust the C of an ABC correction up, or the "-5-" of the 1st leg up?
We are roughly at the 50% pullback point of the USD move up from 75 and previous support at 76.25, the .618 pullback is at 75.95. A 2 wave back can be deep. Either way, not an easy call. So far the move down off the highs does have the look of a 5 count, an (a) if it's a corrective move down.
Obviously getting back above the 77.50 level would be a huge event.

From Sunday Nov.1 "the next leg up will probably be a multiple of the 1st wave, and consistent with a 3rd wave, a moment of recognition. There is a cluster of resistance at the 77.50 level: previous 4th of a lesser degree, previous low, a .382 retrace of the last leg down from 81.35, and roughly a 3 =1 up. So 77.50 is big, and no doubt a lot of stops will be found just over that level. Implications for every other asset out there are HUGE."

Even more true today.

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