Wave "C" down is approaching a number of key support levels, subwave "4" of previous bull market @ 1.16 and then in terms of wave equality between wave "A" and wave "C" i.e., 100% projection of wave"A" on wave "C", @ 1.14. and finally the 61.8% of the entire bull market @ 1.12...
In the next chart is the Commitment of Traders report analysis on speculative positioning in CME for EURO-FX futures. The data represents Net speculative longs as % of total Open Interest. In mid-2007 we saw the extreme bullish sentiment reading on that indicator, with over 50% total outstanding positions in CME on net long side. In 2010 we see just the opposite picture, around 40% of net speculators betting on short side...
To sum up, I think there is a strong probability of 1.14-1.16 zone to become a floor for the euro...
Welcome Anindya,
ReplyDeleteGood to see you posting your views on EW Forecasting.
Keep posting.
Cheers,
Aurum
Anindya,
ReplyDeleteI agree with your view on Euro finding base in the range of 1.16 - 1.12. Many are betting on EUR parity with USD, but i'm a part of that camp.
Cheers,
Aurum