A month ago my post on the E/U correction highlighted a possible completion of W:a and targeted the W:b zone near 1.0500. This weeks pivots had a W-M1 target near that W:b zone for a possible bottom. As J. Yellen was speaking she mentioned that ‘economic performance has been quite disappointing’ after the decline in an industrial production release for USD just as price was hitting that W:b target zone. It would’ve been difficult to catch that falling knife without a ‘Buy Limit’ order down at the W-M1.
Now What? If price holds above the Feb 15 low, stays above the 55 ma, & the 21-55 macd stays above the ‘0’ line the daily stoch cycle will cycle up while at the same time the monthly stoch is OS. For the time being that means trade plan to buy E/U both technically and fundamentally based on the markets reaction. Notice I have W:c off the chart as a new target zone but its off the chart for a reason, it can take weeks to get there. The M-PP could prove to be tough resistance to break at this time. Of course we’ll see confirmation(s) as the right side of the charts build.
Did anyone trade the W:b target zone? Time to move stop to hero or zero today.
For the curious, you can trade Gold & USD/CHF along with E/U as the correlations are strong currently.
Lets see how it plays.