Daily Technical video for 7.8.2011


We have covered the EUR/USD extensively as usual over the past several sessions so most of you should know where we stand. We view the latest drop as possibly ending the proposed wave E of the triangle that began after the 1.4940 high lasting some 10 weeks now. The resolution should be at hand an we expect the thrust higher to continue tomorrow. With the NFP event risk at the start of the U.S. session on Friday the move could become exacerbated so be conscious of whipsawing around 8:30 AM EDT. The only alternate to this triangle scenario would place us currently in wave ((b)) of E needing the ((c)) leg down to complete the corrective structure. Regardless at this point the 1.4100 level should be solid resistance to any attempt at the downside. We’ve been talking over and over about this scenario for weeks now and the time has come to be a little aggressive if you’re not already in the market. I won’t talk about much else in these Overviews until this structure is resolved as it has my full attention and personal capital invested in its success or demise. We’ll try to get a better picture on entries before the event risk tomorrow in the Asian trade. Ideally risk can be reduced to the lows of the U.S. session, but let’s be sure we see 5 waves off that low before declaring absolutes. Because, as most of you know, over time there are no absolutes in the market.

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