Date: October 2012: EURUSD: Update of the Short Term EWP | The wave trading

The Flat idea I posted on October 22 is not looking good since the down leg in progress is not impulsive.

Instead of a Flat correction (from the September 17 high), price could be unfolding a contractive pattern (Triangle).

So far bears have not been able to inflict any technical damage despite the somewhat large correction in progress both in the equity & commodity markets.

The 200 d ma = 1.2833 seems to be out the bears reach.

In addition to the inability to unfold an impulsive decline bears have against them the bullish cross of the 50 d ma > 200 d ma.

Therefore going forward as long as price does not breach the 1.2800 pivot support the Triangle wave (B) option is now my preferred count.

Once/if the Triangle is completed then the thrust wave (C) up could reach the area of 1.3900 – 1.4000

This scenario should prevent a meanigful break down of SPX 1395 pivot support (in the final wave C down of its DZZ)

Obviously this scenario would also imply a bullish resolution for the commoodity market.