Has the Euro rally gone far enough? Just like the USD, we are dealing with a potential expanded pattern, except the trend is going the opposite way. Even though commercials are net long, they are not net long by very much just yet. This bearish phase is not starting to hit major COT resistance.
In some respect my wave counts are playing, “Chicken” with the COT reports and it’s just a matter time to see who blinks first!
The 4th wave rally in Minor degree ended at the top left of this chart and a full set of 5 waves in Minute degree still have to play out. Even though the decline looks stunted, it can extend dramatically when we least expect it. Any move below the 1.120 price level will certainly confirm that this present rally is still a bear market rally.