Last updated: Monday, February 22, 2010
I mentioned the possibility last week that the discount rate decline was a terminal thrust from a triangle and that suspicion has been proved correct as the entire decline from 13660 has been retraced. The rally from 13443 may be the beginning of a larger 4th wave. The next major resistance is 13842. This does not mean that it is time to turn outright bullish but I do like small long positions on dips against the low. 4th waves are often choppy and tend to form as flats or triangles. Range trading may dominate for the next several weeks. Near term support for the EURUSD is 13530-13545. I’ll attempt longs there and target 13700 this week.
