Replies to post #133172 on Simple's Green Room

[pennies2007]

As I said earlier, the pattern is still valid unless the 1.0850 highs are broken. Sure is trying it's best to get there right now. As of right now, the lowest possible target is 1.0650 based on a possible flat formation.

[pennies2007]

The other possibility is that we're looking at a standard flat on EU. In that formation, each peak is pretty much equal to the other. It's still a 3-3-5 formation though which is pretty much what we have so far with the 3-3 formation already in place. So our lows wouldn't be much lower if at all than the previous 1.0658 level at the end of Wave A.

Still makes for a good short though unless the highs are broken.

[pennies2007]

I just checked my EW handbook I keep by my side for reference and it does indeed identify this as a probable flat formation.

The downside target of 1.0625 to 1.0635 is still a very real possibility. In standard flats, Wave B terminates close to wave A peaks, which would explain this current move to very near the previous highs. But Wave C extends a bit beyond the previous smaller Wave (A). So a break below the previous low around 1.0658 is a given if the pattern is valid. Just a matter of how far below they want to carry it. I think the key level I have marked is going to get hit.

The lower peak on the TDI here is a real clue. Normally, an ABC correction will show some kind of divergence between Waves A and C in the final formation. But here we have a lower peak on the TDI where I have Wave (A) listed. That almost always means price is going to return to that low area and make a lower low with a positive divergence in this case.

Time will tell...I've been wrong before...LOL!

EU Hourly Again...