Simple's Green Room

[pennies2007]

If the drop is really finished villas, we'll get a consolidation area that will be in the form of a triangle first.

After that, we'll break through the top of the triangle and rally upward. But we've got some serious resistances to overcome here.

1.45, 1.4625, and then 1.47. I expect the pair to turn back each time it hits these levels.

What we just had was Wave A of a correction. Wave B will be made up of three waves that normally end about halfway up from the full length of Wave A. After that, we get another leg down that will take us below the lows we just hit.