Many analysts wonder why the EURO
is so resilient in the 1.11 support area
and have resisted the overwhelming selling pressure. I think a more reasonable scenario is to consider the whole move down from 1.1712 to 1.1086 as the 1st wave within the ongoing 5th wave down. This way we can label the corrective, overlapping upward movement from 1.1086 low as a developing wave 2 which will probably go into the 1.1560s area before turning sharply down in wave 3 of 5.
The time window which is ripe for this pair to get back to south pole is between 15th and 19th October. If bears manage to break the 1.11 support decisively, the fearful 3rd wave will be considered underway.
Sharif Azadeh, CFTe