As an aside, I make no claims that trends need to be the same length or amplituded. I am just observing that the market seems to be being pulled to 1.5150, which happens to be a very important resistance point in a number of longer term time frames. If you put a gun to my head, i would predict that E/U will trade there relatively soon. I also believe that levels, held or breached, tend to lead to price action moving toward the next logical level. I believe that a violation and hold of 1.5150, will target the 08 highs. Past this point of all time absolute price highs, who knows? Swing Equality, retracement equality? hard to pick a target.
All that said, I believe we are in for some massive icreases in volatility as we begin to test this key level. Would it suprise me to see E sell off hard in here? Absolutely not, in fact i would view a hard retrace as healthy. Keying on the long term nature of the upcoming resistance level, there have to be massive standing limit orders and option pegs (including Knockouts) coming up very soon.
There is danger and great opportunity in this market.
