EUR/USD – February 5, 2011 – weekly candles. Here’s my preferred “big picture” count on the Euro: Leading Diagonal . .

Sid Norris
 In Blog, EUR/USD
This is my preferred longer term count for the Euro: a bearish leading diagonal for Primary (burgandy) wave 1.  Each wave of the diagonal appears to be a zigzas, so, inside intermediate (black) wave 5 down, I believe we’ve seen Minor (blue) waves A and B complete.  All thats left is five Minute (pink) waves down for Minor wave C (blue), eventually reaching the target zone of 1.18754 to 1.10133 around October.  The reason for the upper level of the target zone (1.18754) is because wave 5 of a leading diagonal must reach beyond the extreme of wave 3.  The reason for the lower target number (1.10133) is that in a contracting diagonal, wave 5 must be shorter than wave 3.

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