EURUSD by SlyQsx

 Once again Mario Italiano Mago has led to believe in impossible.

I still don’t understand, how it’s possible to save a bankrupt by buying his debts with guarantee almost ‘garbage’. It remains a mystery, what ECB has promised for this. The history teaches, that debt is a slavery, the conclusions suggest themselves.

The ECB will be full of debentures worth only promises, soon, and it put itself in a sticky situation. Mario has bought a little bit of time. How much?... we don’t know it now, but this boat has so many holes, that any amount of printed papers isn’t able to stick them.

As long as Europe is ‘red’ , it will sink; each socialism leads to a precipice. I suspect, that the ECB perfectly aware of its situation and know all the consequences. However, there will be more time to prepare the lifeboats, to run into the new project, probably already created in a backstreet of ‘politics’.

Now, it’s time for FED’s movement, probably in agreement with the ECB, because I can’t believe, that so important decisions aren’t consulted nowadays. I won’t be surprised, if China and Russia have their votes, of course unofficially, outside light of spotlights and cameras. The game will goes on under the Ben’s Szalom and his dollars pouring helicopter. The Thursday decision.

We should also remember about expecting the decision of the German Court of Justice, regarding the fiscal Pact and ESM; the decision should be known on Wednesday.

Ok, it’s time for lines.. let’s look at EURUSD.

With the stroke 2692-2747 the situation has changed; because of this fact, the counter should be changed.

The decreasing trend line has been defeated immediately, what shows bulls’ determination.

The first serious resistance appear about 1.30, where the lower line of previous consolidation is running.

The first important support 1.2637, 1.2501.

It should be remembered, that the long-term trend has the south course. Because of this fact it should be assumed, that structure being created now is a correction, and the present movement, cut into sub-waves, can be its ‘A’ wave in ‘ABC’ or the second ‘X’ in ‘WXYXZ’. The basic targets aren’t getting change 1.1875 , 1.1638 , 1.0762 , I also don’t exclude the pursuit of parity.

Assuming formation the second ‘X’wave (weekly chart), it’s target level may be appointed. The equality to the fist ‘X’ is near 1.3140, where we can see abolition 38.2 all decreasing movement 1.4939-1.2042, One2One formation would arise in here.

The weekly chart shows possibility of building the bear’s harmonic formation of dragon, with target level 1.2903 , where we also have AB=CD (One2One) and abolition 61.8 ‘XA’.

Of course, there should be an alternative solution; so the previous main counter becomes alternative. According to this assumption, going far from the medium-term decreasing channel would be a trap, and returning the rate into its range, confirmation of the false going far.

Let’s look at RSI channel, which is being built in the H4 interval, the value moves within its borders.

Best wishes for everybody,

Robert SlyQsx

Blog of author’s text:

http://elliottwavesurf.blogspot.com/