EUR/USD Long Trade (update)

Update @ 6:52pm CST: I will place an order to go long @ 1.4800 with a stop @ 1.4750.

Wave1 seems to have occured as a diagonal in 5 overlapping waves. Wave3 should be in progress, with Waves(i,ii) complete. Because Waveiv cannot overlap Wavei, I will place my protective stop just below Wavei. This way, as long as I am right about the trend, I should not get stopped out.

I plan to buy on a Waveiv correction @ the 38.2% retracement (1.4785-90). At a minimum, I expect another high 1.4835 to complete the 5-wave cycle from 1.4620. Since Wavei in this chart is also at the same level as Wavei in the chart above, I feel confident in holding my stop below this level.

A lot of retailers went short (and closed longs) on today's breakout. There are nearly twice as many shorts as longs right now. I think this is a good sign that the uptrend has resumed and that EUR/USD will pop above 1.50.

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