Oct 092008
 

We have had a fairly straight forward decline in the EUR/USD from 1.4565 area. All corrections till recently have been quick and relatively simple in structure. This means the time is ripe for a complex correction. The euro has been doing precisely this, undergoing a complex correction, from the low posted at 1.3440. You see, a complex correction is typically where you think it is all over, when the instrument suddenly changes course and surprises you. Be prepared for such a surprise move in the euro to around 1.3855/75. Now I am not saying this is definitely going to happen, because, by definition, one is not supposed to be able to predict the exact course a complex correction will take. What I am suggesting here is to take advantage of any such ‘surprise’ and instead of being surprised like the others, you will sell near the top. (of course with suitable stops). Take a look at this chart, EURO, and you will see what I mean. Good luck.

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