Based on EW count, i was expected a big down for EU, but was invalidate the count after Yellen's Speech, so this is my view now for a medium view on EU. Just Breaking the channel could think in a big down move. Meantime...short to complete (B) wave (magenta) based on abc correction (blue) waves. So the Target could be found in 61.8% Fib level from March low and...
As i mentioned, this correction for me is not over to complete red 4th wave. Was composed by an abc - zigzag and a contracting triangle. I suppose fundamentals was impact directly in the price. So i wait on that levels (1.1280 or 1.14) to enter Shorts positions.
Good luck everyone
That correction is posible because a complex correction formed by an abc (flat - W wave), abc (Zig Zag - X Wave) and a contracting triangle (by 5 waves) to complete Y wave and finishing 4th red Wave.
So i recommend to wait on next levels on triangle to enter Long or Short depending Risk you want to take.
Good Luck everyone.
Playing with cycles lines and fibos channels, i found HH and LL levels in exactly each cycle (black and red lines)...the next red line (LL levels) is for 09-01-2014...so as i see price could reverse at 1.3550 or as second option go for 1.3480 (low line of blue Up channel) and go UP. Must see with the news today and friday. Happy trading for all.
I made a chart with fibos leves of every important wave on 1D and find this...
1. Price must find a strong resistance at 88.6% (1.37625) and could go down to a Strong Fibos confuence at 1.27329/1.2840.
2. Price could go UP to 100% (161.8% previous level) at 1.3840 and then down.
3. Price could go UP to 127% - 261.8% previous levels in the zone 1.3975/1.4013.
Apply EW theory the "b" wave are still active...I thought that it was finish with last correction, but confluence lines on 1.3495/1.3500 add to Fib leves (76.4% from 1.3708 to 1.2747 and 161.8% from last Down move make me think price will go UP and then DOWN. The target of "c" wave is 161.8% of b wave (1.2347)
Let's see :)
I expect the price must to reach over 1.33 level to start the Down move, but anyway i think this move has started today and could be like the chart. And maybe the down will be more deep than this. Will see