I mentioned the possibility that the discount rate decline was a terminal thrust from a triangle and that suspicion has been proved correct as the entire decline from 13660 has been retraced. The rally from 13443 may be the beginning of a larger 4th wave. The next major resistance is 13842. This does not mean that it is time to turn bullish however. 4th waves are often choppy and tend to form as flats or triangles. Range trading may dominate for the next several weeks.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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