Saturday, February 5, 2011

EUR/USD - February 5, 2011 - weekly candles. Here's my preferred "big picture" count on the Euro: Leading Diagonal . .


This is my preferred longer term count for the Euro: a bearish leading diagonal for Primary
(burgandy) wave 1.  Each wave of the diagonal appears to be a zigzas, so, inside intermediate (black) wave 5 down, I believe we've seen Minor (blue) waves A and B complete.  All thats left is five Minute (pink) waves down for Minor wave C (blue), eventually reaching the target zone of 1.18754 to 1.10133 around October.  The reason for the upper level of the target zone (1.18754) is because wave 5 of a leading diagonal must reach beyond the extreme of wave 3.  The reason for the lower target number (1.10133) is that in a contracting diagonal, wave 5 must be shorter than wave 3.