EURUSD Forecast (18 Nov 08)

Its been sometime since I looked at the charts. Couldn't resist and decided to look at one of the charts today - EURUSD. It would be better if I looked at some of the other charts too... but will make do for EURUSD for now.

Daily Chart













Counting from the significant top in July 08, looks like we are in the process of a wave 5 (or wave 5 might have completed). The swings on the daily are somewhat too huge for my trading appetite, so I'll look at the 4 hour chart.

4 Hour Chart













I'm counting the move as a possible diagonal for a wave v. My set-up as follows:

Entry (Long) : 1.2400
Stop Loss : 1.2100
Take Profit 1 : 1.2850
Take Profit 2 : 1.3200

1.2400 is a fairly good area to go long for a few reasons:
1. It is a support level
2. It is a psychological support level (whole number)
3. As a wave e, it is 61.8% the length of wave c.

Once again, this is based on a quick analysis, and not as thorough as I normally like it to be. Since I'm looking at this as a diagonal, a break below 1.2400 is normal, but a break below 1.2100 invalidates the wave count for a diagonal.

That's it for now. Good luck with your trading!