Thursday, October 28, 2010

European Geometry

The last comment demonstrated the 7 week or 49 day (7x7) cycle in the USDX. The following is a graph of the EURO with a 84 day or 12 week cycle. 7 X 12 = 84

The graph is divided into grids based upon the initial 84 day cycle from the April 22, 2008 high of 160.20 and the subsequent high of 160.19 on July 15, 2008. This initial cycle is the highlighted yellow square in the top left corner.
  • Squaring out 7 cycles hits the projected Dec 01 2009 high: actual high is November 25, 2009. Note that time is 7 squares over and price is one square down. (Burgundy Square)
  • Prices broke down when the EURO broke under the 30 degree vector emanating from the center of the 7 square circle (The red circle at 3.5 x 3.5)
  • Extending the initial double top square 12 cycles projects a potential pivot on November 2, 2009 (# 11) and January 25, 2011 (#12)
  • The arc of the 12 cycle square (Green Square) is currently acting as resistance to the EURO
  • The 30 degree vector coming from the center of the 12 square cycle is just below current the current price level much like the 30 degree vector acted with the 7 square cycle. The 30 degree vector will be at approximately 140 at the termination of the 12 square cycle on January 25th.
  • Note how many times the price of the Euro hit the grid intersections during the 7 and 12 square cycle. The vertical grid lines offered support and resistance and the vertical grids were at or near pivot points. The Euro is currently at (GRID 11-3) Previous hits were at 2-2, 3-2, 4-3, 6-2, 7-1, 8-3, and 10-3.
BOTH THE EURO AND USDX ARE AT IMPORTANT CYCLE JUNCTURES. THE PRICE ACTION IN THE NEXT WEEK WILL LIKELY DETERMINE THE TREND INTO LATE JANUARY OF 2011.

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