Euro
A 4 hour eurusd chart showing the impulsive pattern identified yesterday.
It shows a similar pattern to the move from January through November 2007 seen on a weekly chart.
What is similar in both charts is the steepness of the ascent, after a long sideways move once the 1.618 level has been achieved.
In the lesser timeframe the move is roughly sideways, with one final dip approaching the original alpha high before the sharply impulsive move begins. In the weekly chart that pause is more chaotic, with a move down below the alpha high, than an ascent to the level of approximately 2x the base, then down again to the alpha level before the sharp ascent begins.
On the weekly chart the duration of moves is as follows:
8 weeks from alpha to beta.
13 weeks of a slow steady climb to the 1.618 level.
16 weeks pause--(a very chaotic pause, fluxuationg wildly between the 2.0 level and below alpha).
14 weeks steeply sloped climb from the original alpha to the 4.236 level.
This last move is accomplished by a six week climb to delta 2.618, 2 week pause around (not below) that level, and then another 6 weeks to 4.236.
Looking at the weekly chart, with its delta 4.236 target met, raises the question what pattern is in play in this latest break-out well above the November high?
Is everything which has happened since the November high until the breakout a few days ago been a sideways correction (x-y-z)? Or was the high on February 1 a new alpha and the low on February 7 a new beta?
In which case we could project:
Or is perhaps the (short term) top made yesterday a new alpha and we have yet to see the beta?