Last week the euro moved towards the downside as expected and reached both of our targets — but then it took a strong nose-dive and shot right through our invalidation point as well.
Technically speaking, it’s still possible to continue with our previous count with just a minor modification to account for the recent movement. However, a number of technical and sentiment indicators are beginning to turn well in favor of the triangle scenario, which also accounts very nicely for the recent movement, so it seems the time has come for us to adopt it as well.
We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points. As usual we’ll use each count’s invalidation point as confirmation of the other count.