The European economy has been a bit of a mess for a while now, and the Euro got slammed for it. After a steep drop that culminated in an early October bottom, the Euro has rallied for a couple of weeks. And that bottom appears to have come right on time.
In my last post I discussed how the square out of time and price on the Euro was calling for a bottom. And this came together nicely, as the Euro swiftly dropped down near 1.25. We were a little early but ultimately the MATH worked out and a “perfect” square out occurred on the Euro.
Check this math out:
- 1.399 was the high
- Drop the 1 you get 399.
- The Euro dropped for 148 days
- 399-148 = 251
- 251 equates to 1.2510.
As these PRICE and TIME square outs occur be sure to take note. The probability is that there will either be an acceleration in the direction of the trend OR a powerful inflection against the trend, culminating in at a point in TIME and space.
Here are a couple of update Euro charts. Have a great weekend.
Euro Chart – Time & Price Square Out?
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