EURUSD--Sunday Afternoon, April 5, 2009
Some short term charts showing the impulsive move last Thursday associated with ECB's decision to lower rates by only 25 BPS rather than the 50 that was expected.
The alpha-beta base was set up at the end of the Asian / beginning of the European session. When the ECB decision was announced the market jumped uip to the 2.618 delta level (although it was already moving up, straddling the 1.618 level an hour or so before.) By early afternoon in the New York session, the rally peaked at the 4.236 (phi to the 3rd power) level.
The market then sold off in a three wave correction, the C wave ending at a the 1.272 Fibonacci level below the A.
What is to follow? Sorry, crystal ball is hazy at the moment. (So much for free analysis--you get what you pay for). Let's see how things open tonight.