EURUSD 2.26pm

Certainly consolidation going on at the moment and unwinding the 60min SMI but not touching the 4hr cluster as of yet. Whilst the short term story is playing out, I have been building the case for EURUSD sharply down, or at least this storyboard has got to be exorcised from the options list. I think this study does all the talking.... That is the price envelope of D6, being the future price cycle of T6. That trend line is a little more than a monthly cycle, so I have added the monthly Donchian Channel of the high and lows to last night's regression channel from 1.3171 and the interconnected gold trend line from June 2010. As I said over the weekend, we have been up and could continue to go up but hopefully this chart at least suggests that there is more to this story right now than counting numbers in a sequence (EW!). If we are completing a 'b' wave in the 'B' wave down from 1.3171, then cutting D6 again will provide both a price and timing target, which I'll cover in due course. Cutting it of course is another matter. Might want to have a look at T6 and the weekly SMI positioning whilst reading!