Monday, May 09, 2011

Potential EURRON Reversal

The correction in EURRON downtrend mentioned in a previous post proved to be the potentially 4th corrective wave of the 5-wave downtrend. The pair reversed from just shy of targeted 4.15 and melted down to marginally new lows towards last year targeted lows (around 4.06) in a clear divergence with the rising price oscillator (MACD). This set-up resolution was the short term reversal and the potential end of the 5th wave (not a harmonic one, though) which is usually followed by an a-b-c correction higher towards 4.15 and perhaps 4.19 later on.