EURUSD--Friday, December 12, 2008
Going back to the question in the last chart of Tuesday's euro post, the answer is yes.
After the low in EURUSD in late October, the market formed a triangle formation through November. But that essentially ended with the lows around November 21. The subsequent move up to 1.3080 broke through the downtrend line and can now be seen as the alpha top of a newly forming base. The low at 1.2546 on December 4 (last Thursday) was the beta low. The impulsive move yesterday topped out at the 1.618 delta target. The next target--delta 2.618--would be at 1.3944.
