Wednesday, May 25, 2005

Eurocurrency Boxes

The daily chart above this post depicts the bear market boxes for the Eurocurrency futures. These boxes are 9.52 points wide and begin from the bull market top at 136.87.

The market is trading in the second box of the sequence and should drop close to the 1/2 point of this box at 122.59 before a substantial rally sets in . The next rally probably won't be as big as the first which extended a bit more than 3/4 of a box size. Instead I think that any rally that starts near the 122.59 level will carry no more than to the top of this second box which stands at 127.35.

I think this bear market in the Eurocurrency will probably carry the market below 100.

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