Euro forecast as of 01/20/2009

EURUSD – Last weeks pattern is still valid, but with recent rapid down move and in light of European economy, another possibility has immerged as well.

It is possible that the correction is over and market is in new waved down. Elliott shows that market is in the process of “Zig-Zag” (ZZ) 3^rd wave in the range of 0.9766 – 1.2458 between January 29^th and April 22 ^nd.

Zig-Zag is a three wave pattern, where 1st and 3nd wave is Impulse and the 2nd wave is corrective in nature.