- September 11, 2011
- Posted by: Ramki Ramakrishnan
- Category: Euro
The European situation has come to a quick boiling point, and the ECB action/words (plus the resignations etc) have all but pulled the supports under the currency. The charts give you some indication of how I am counting the waves, but the more interesting question is where will the current third wave end.
Given the fact that the 2nd wave was very weak and brief, we should ideally look for an extending third wave. There is some minor support just below 1.3600, and assuming we reach there and it recovers mildly before Europe opens, then you can join in fresh selling and travel down to 1.3435 or lower! We shall see. If you can’t get a decent entry level, you should keep your positions small!
Once you know where the minor 4th wave within the current third finishes, you can use some of the techniques I have taught you in my book to determine where the fifth of the third wave will finish.