The US Dollar Index weakened further on the back of the suprising and desperate measures taken by the Federal Reserve. This triggered a move below the 50% retracement of the entire 2008 recovery to briefly probe a fibonacci retracement (78.6% of 75.89-88.46) this morning. Extreme oversold daily studies should buoy a corrective fourth wave towards the 81 handle, where a cluster of retracement levels lie. Due to alternation this fourth wave should be complex since the second wave (or B wave at that point) was a simple pattern. The fifth and final wave targets previous support at 76.00. Expect selling pressure to persist while below the 10-day MA.
Strategy Summary: SOLD EUR/USD SHORT AT 1.4388 FOR A 1.3928 (CORRECTION TARGET), STOP AT 1.4444
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