17 Feb 2016
7:02 a.m. ET
Medium term (2/17): Whether or not the 1.4079 low (1/21/16) represented Major Wave V or Wave III down, I would expect any recovery attempt to take more time (though the distance, i.e. the rally in Wave A was enough). Thus, looking for another recovery attempt off today’s low at 1.4242. That said, a full test of the 1.4079 low is possible while keeping the recovery view intact. Below 1.4079 sets up for a test of the credit crunch low near 1.3500…
Daily View (2/17): Today’s low came at 1.4242; the standard extension of minor Wave (c) = (a) was 1.4256…so distance has been met, should the pattern be one the market is working from. So, now looking for the pair to rally in Wave (a) of C from the low today, now that UK jobs data is out of the way.