2010-09-30_0725_EUR_30min

Overnight, the Euro finally broke of 1.3626 snow line and fell to find support at the 1.3579 snow line before popping back up to new highs. The momentum picture from yesterday still remains ripe for a turn, although the length of the move has caused us to adjust some timeframes on the charts. We’re now using a 30 minute chart to look at wave [5]. The overnight dip retraced about 120% of the third wave EWO peak and likely set the location for wave (4) of [5]. If so, that puts us now in (5) of [5] and it looks like it still has some upside left. Given the strong pull the Euro has felt from FibGrid lines lately, perhaps it is headed for the 1.3703 snow line. Our updated first EWO levels that we are looking for to give any confirmation of a turn are:

• below -0.00421 on a 30 minute chart;
• below -0.00414 on an hourly chart; and
• below -0.00838 on a two hour chart.

Moves to the upside that show EWO values above third wave peaks would take the focus away from looking for a nearby turn.