On Friday the Euro confirmed a new daily pattern that could add almost ten U.S. cents to its value; the pullback underway this session might provide us with an opportunity to catch the ride up. The daily pattern was described in our tout of September 1. It is now active and initially targets a midpoint at 1.3175; the “D” target is 1.3763, almost ten cents above the current price. During the hurly-burly trading in the moments after Friday’s NFP data release, the Euro bounced substantially from two pips above the midpoint of a smaller pattern that we touted that day. Today’s pullback, which is threatening to break that pattern, can be seen as an impulse wave on the intraday charts beginning at 1.2892. Traders should watch for a new bearish pattern to emerge which would offer low-risk levels at which to enter on the long side. The daily pattern will remain active so long as 1.2587 is not revisited. (Posted by Doug McLagan)
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