Talk of the town today -- the Euro

I am still not very well but I am back at work today. It has been grulling 8 hours until the time to knock off. the whole day I have been in process of writing up the speech to the presentation that I have created. It is not for me but to the presenter, I actually created a presentation for someone else to present.

Anyway, things have not been quiet nor mundane at the stock market, STI for instance dropped more than 2% to below 2,800 level, beyond my expected level. But then, this entry is not about STI. EUD is the talk of the town today.


Fig 1 EUD Monthly Chart

As it went, Germany introduced measure to curb naked shot, ending up causing panic over all markets, including the devaluation of EUD.

Base on my last entry on EUD, I was expecting about SGD175 level to be the objective of the fall, this was base on its 61.8% Fibonacci retracement line. Certainly dropping to a level of 170 is a little out of my expectation. However, 175 was just a reference created from Fibonacci calculation and it is not as strong as support line.

While saying so, I was expecting EUD to at least rebound towards the neckline before continuing down to its objective created by the double top formation. So it seems to me now EUD is in process of the C wave.

The objective of the double top is 162.436 while there is a support at 165 region. I gather that there should at least have a short pause by the time EUD reaches 165.

Anyway, the indicators are both at over sold region and they have remained there since they reached the bottom, monthly and weekly. By right a rebound should be at the corner and since I am using a monthly chart, the rebound should not be an event of just a few days.