Simple's Green Room

[pennies2007]

The fact that AU missed that 50% fib hit really makes good sense from a Goodman wave perspective. The difference between the ideal retrace at 1.0712 and where it actually rallied to overnight leaves a gap of about 25 pips. Our ideal target on the low side was 1.05 even. If we subtract the gap from the 1.05 target, we get a target of about 1.0475 which puts us almost dead on the 38.2 fib retrace. Nice!