EUR/USD: I generally do NOT EW count currencies, but sometimes it can be useful on shorter time frames just to illustrate expectations. What I am imagining for this pair is a possible running converging triangle that completes in the European morning, leading to a subsequent swift thrust down to test the .786 retrace near 1.3283. That could give us the (c) wave I am looking for to complete [b] of Z in equities.
EUR/USD 1 HOUR
The update to that chart looks like this.
EUR/USD 1 HOUR
Given the near record short positions in the Euro, a rapid and violent short squeeze is a distinct possibility here.
Furthermore, given the 0.8 correlation between the Euro and equities, we may be getting very close to the end of that [b] wave.
RUT 10 MIN
I would not be surprised if we see no announcement from the EU summit tomorrow. At this point, I am looking for them to continue meeting into the weekend, after which they may pull out yet another short-lived marvel of financial engineering designed to try and use OPM (other peoples' money) to solve their problems.
More later....
