Friday, 25 November 2011

European indices fight to keep their support levels


Italian MIB fights the zone 14000 and tries not to get far away from it.....further down movement is bad for the correction scenario and good for the new impulsive move scenario as shown in the chart. If 13090 broken, the correction scenario is invalidated because all 5 waves will be fully retraced.
 DAX has almost the same scenarios as MIB but is further away from 76.4% retracement. If 76.4 % is broken swiftly then the scenario of 1-2-3 downwards will probably prevail.
Eurusd still moves downwards with lower lows and lower highs. The reverse point we discussed at 1.3422 has already given us 100 pips. The pair is still under the red trend line. Its correlation with S&P makes me believe that it has still room to fall. S&P 1150 target we gave last week may be an initial target, and we can probably see that index fall lower. Updates on the S&P  later.

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