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The decline in eurusd seems to have corresponded closely with the delta pattern shown in earlier posts. The bottom came Monday morning, March 24 near the end of Asian session. The low at 1.5340 was 6 pips from the projected target at 1.5334.
So far slightly more than 50% of the impulsive delta wave move has been retraced.
See early charts of this move here and here.
FT: “Dollar rallies as traders square bets.” Also: “Both gold and oil prices fell heavily amid talk that two large funds were cashing in profitable bets.”
Financial News Online: “Lehman Brothers Veteran launches hedge fund” to focus on “distressed structured products.” Also plans to launch a long term private equity fund to invest in less liquid securities. Fund to have minimum investment period of five years.
Bloomberg: Richard Bove (described significantly in article as “the analyst who advised selling financial shares eight months ago before they tumbled...”) now saying that the present provides a “once in a lifetime opportunity” to buy these sames shares.
Financial News Online: On the other hand Kenneth Murray, of Blue Planet Investment Management (described here as having shown “an uncanny knack for predicting how the banking crisis will unfold) says things are going to get much worse. Despite “expectation-beating” first quarter results from Goldman Sachs, Lehman Brothers and Morgan Stanley, he is expecting an escalation of the crisis. But at the end of the article, curiously enough, he also speaks of a “once in a lifetime opportunity,” but that opportunity has, in his opinion, not yet arrived. (But he likes Greek, Polish and Russian financial stocks.)
And in the Telegraph a (suitably indignant) story of the investigation of the HBOS rumor story, complete with hedge fund “dirty tricks” units, etc..
Markets are closed or thinly traded for Good Friday.
Euro trades sideways after yesterday morning's tumble
Showed some support at 1.272, then whipped through 1.618 only to show support at 2.058 (equivalent to 1.272).
Possible scenario: a slowly building rally that runs out of steam around 1.55 (1.618).
Irregular correction beginning with last July's top? Z = 1.618 * X.
After the limited sell-off yesterday on Fed action. A renewed attempt to get through 1.55.
Hourly chart.
