Thursday, March 19, 2009
EUR v's USD
The Euro surged against the USD overnight, hitting 1.35 up from around 1.30.
This surge can be considered as part of wave 'E' as the last leg in a multi-month triangle. This interpretation fits into a bigger zig-zag correction (5-3-5) scenario where this large triangle is corrective wave (B).
Triangles indicate the current trend will soon change (or at least correct). Since the trend is down, then one more wave down needs to unfold - in this case Wave (C) as a 5 wave move.
Wave 'E' of this triangle, the last wave to complete, should end very soon - perhaps up to the 1.38 area (or even higher, but cannot move beyond point 'C'). Once complete, there is an expectation that wave (C) will commence and head down to the 1.15 - 1.10 area.
The completion of this large multi-month zig-zag correction should see the EURO re-commence the longer underlying trend upwards.