[idejan]

Sideways trading is difficult to forecast and more difficult to trade.
My view is that we will have a prolongated sideway trading in the months to come in the range of 1.19/20 to 1.26/27 before a break up. On such a break targets are above 1.5
Below 1.1750/30 is a long way down.

I have explained my view in detail in few previous posts, now let see how it looks on the chart.
On the chart is the market from july low till present day.

Now on the chart below, Wave (B) of the Minute degree Zigzag which is in play at the time of the post (the middle black line at right end of the chart is playing now), should complete arround 1.23 and 1.2356 but could extend as far as 1.2450 as explained earlier. This wave is due to complete anytime from now until 30-Aug-2005.

After wave (B) is complete, market will continue down into wave (C). It should retrace wave (B) by 133% or arround 1.2046 but could extend below 1.19
That (C) will end Wave X of the Minor degree inverted Flat with targets between 1.1995 and 1.2046 with possibility to extend below 1.19 and time for it's completion anytime between 25-Aug-2005 and 05-Dec-2005 which synchronizes well.
After wave X is complete, market will relly up into wave Y, which should be a five wave Impulsive pattern. Expect wave Y to be 98% - 172% of the price length of wave W.
Wave Y will complete this Double Sideways pattern wave (b) which is second leg of the biger degree correction*.
However, ....(continue in next post)
ID