Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
FOREXAnalysis: Wrote yesterday that “the new low however satisfies minimum expectations for wave 5. Extension targets are 127%, 161.8% and 200% x the wave 4 range at .9456, .9365, and .9264. The 161.8% level is just 20 pips below the 2011 low. Above .9660 is needed to alleviate downside pressure.” Price reached the slipped below the first level before reversing sharply. This is the 3rd such large range reversal (key reversal and range >= average 20 day range) since May 23rd. The week’s range is also the largest since the week that ended 6/8/2012. This all adds up to the market trying to form a low, if only to retrace a portion of the decline from 1.0581.
FOREXTrading Strategy: EURAUD short is a possibility with the AUDUSD reversal.
LEVELS: .9264 .9389 .9434 .9673 .9790 .9841