Wednesday, September 15, 2010

Changed my Mind on EUR/USD Long Term Bullish but Can Short Here for Scalp

Longer term, Euro looks much higher, these fractal waves (in white) within the bigger 5-3 Elliot Wave pattern (yellow i,ii,iii,iv,v,a,b,c) give confirmation that the yellow a and b are accurate.  That implies the yellow c wave should at least rally past a.  Even if we only test yellow a that is about 296 pips from current price of 1.3007

Right now however is a bad place to go long since there is a big resistance zone being near a triple 0 (1.3000) and the 61.8 retracement of yellow ac (1.3048).  Also there is a Bearish Gartley developing here on the 4 hour chart so in fact is a short term short signal:
I would be more inclined to buy pullbacks and not trust the short side too much.