Wednesday, November 17, 2010

Euro

Yesterday the Euro of course was the big story. At the lows of 134.44 it had retraced 50% of the entire leg up that began in late August, and bounced. A little.
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A 50% retrace can often  mark a reversal (see crude oil) but it all depends on context. How's the overnight bounce look?
Dec 15 min
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Doesn't look exactly like an impulse wave up.In fact it is clearly corrective with overlaps and a rather modest .382 retrace of the last leg down yesterday morning.
So at the moment lower lows look pretty likely. 
How much lower? Under the next milestone would be the .618 retrace at 132.30.
It seems like just yesterday the whole world was complaining about the devaluation of the USD and hyperinflation. Although yesterday no doubt saw a lot of liquidation, I'm guessing there are still a few Euro longs/ USD shorts out there.


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