Euro--Monday Morning, October 13, 2008
First leg of an impulsive move down from an alpha beta base. 1.618 delta target met last Friday. Modest rally off this low continues today.
First resistance is around 1.3610, the 1.272 level. Today this has been a sort of central point around which the market has traded, with a slight upward bias.
Next resistance will be the original alpha level around 1.3875, and if it gets through that level, 1.4090.
But if the pattern in the chart above is correct, we might see a resumption of the downtrend in euro against the dollar. The target would then be the the 2.618 delta. How far down with this pattern? Pretty far. How does 1.2280 sound?
