As expected the euro moved toward the downside, reached the first target, and exceeded it by 9 pips.
So far the main count is working out very nicely. If today follows suit, the market should be ready for a sizable upward correction that should last a couple of weeks or more.
If I’m correct about this, we’re catching this upturn on the very first day of its development with a very good reward-to-risk ratio. However, since the trend has been downward for quite a while, I need to see confirmation from both price and pattern before I can put my full confidence in this view.
Therefore, while the hourly chart follows my assumption of a new uptrend, the daily chart will continue to cover the possibility that the downtrend is still ongoing until I see a clear reversal signal at that level.