Highlights
- A 50 Day Look And EURUSD Wave Count
- Economic Data-Filled Wednesday Likely To Define Future Dollar Trend
Tuesday, May 09, 2006 7:25 PM EST There will be no trade setups tonight in anticipation of choppy price action in preparation of tomorrow's significant data releases. We are going to dig a little deep into the EURUSD daily chart to see what we can uncover with regards to our current breakout trend. After playing with some time symmetry studies last night I uncovered some EURUSD tendencies, or rhythms, so to speak that might help us conceptualize what we are dealing with in here. Starting on the left hand side of the chart as EURUSD continues its descent from the 1.3660 high; you will notice two impulse selling waves in the direction the trend which is down. The first wave totaled 53 days to a 1.1850 low and the second push beginning at 1.2600 down to 1.1640 lasted exactly 52 days. The trend then reversed higher and began a 50 day march towards 1.2324 high followed by a pullback to 1.1850 area which then began the next and current buying wave. Well guess what. We are now in our 51st day of the current up wave.
EURUSD's tendencies to trade 50-53 days in a single impulse wave in the direction of the trend are quite apparent. So we need to heed the warning that day 52, which is jammed-packed with economic data, is tomorrow.