EURUSD ABC Pattern Potential Setup 3/11/08

The ABC pattern is a consolidation pattern that is the practical form of an Elliot Wave analysis. On the EURUSD this morning we are showing several divergences on the longer time frames (like the 4 hour) indicating that the long trend against the USD may be taking a break to retrace.


The 5 min time frame is already showing a minor downtrend (really still somewhat sideways), however, there is an ABC pattern forming and if we get a reversal candle around the 161% retracement fib we will go short and see if we can get a short break in the EURUSD.