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Euro Update: Yesterday's Call Blown, Targets Postponed or Negated

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An alert regarding yesterday's euro chart.

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I was going to take today off, but I felt obligated to update euro. In yesterday's update, I discussed the fact that euro appeared ready for a deeper correction; however the wave I was anticipating fell well short of my expectations, and euro found strong support right where it needed to. It's now formed an incredibly symmetrical reversal pattern, and is almost certainly headed to retest or (more likely) best the previous high.

In real-time, this pattern became apparent as it unfolded, but that doesn't do readers any good, and I apologize for blowing this one.

Note the bear hope that still remains is depicted by the alternate count. If this is the alternate count unfolding, that count is quite bearish, but I'm not going to pretend it's what I was expecting yesterday. The alternate count is, in fact, considerably more bearish than the count I had posted.

The white ABC forms a complete fractal, and that suggests the alternate count is lower probability -- but because these are fractals, a complete fractal sometimes only marks the first wave of an even larger fractal. A triangle would also not be entirely out of the question here, so be on alert for that pattern if the rally falls short of the previous highs and embarks on a deep correction.

It pays to be aware that if the Wave C low is broken in the near future, an extremely sharp decline is almost certain to ensue, and yesterday's targets will become active once again -- so if one is bullishly inclined, the stop-and-reverse (SAR) level is clear. On the other side of that coin, a break of the wave B high should lock-in the corrective nature of the decline.


Click to enlarge

My apologies again for reading this one wrong yesterday; I'll return with the equities updates tomorrow. Trade safe.

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No positions in stocks mentioned.
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