Is it time to extreme deep-thrust?

Before we get the point better see what the fundamental says:

EURUSD Fundamental :

Nov. 13 (Bloomberg) -- The German economy, Europe's largest, contracted more than economists expected in the third quarter, pushing the nation into the worst recession in at least 12 years.
Gross domestic product dropped a seasonally adjusted 0.5 percent from the second quarter, when it fell 0.4 percent, the Federal Statistics Office in Wiesbaden said today. Economists expected a 0.2 percent decline, the median of 40 forecasts in a Bloomberg News survey showed. The economy last contracted this much over two consecutive quarters -- the technical definition of a recession -- in 1996.
German companies are struggling with dwindling export orders. Siemens AG, Europe's biggest engineering company, reported a profit decline today and plans to cut 16,750 jobs by 2010. The Organization for Economic Cooperation and Development lowered its global forecast for the second time, saying the economy of its 30 members will contract 0.3 percent in 2009 after growing 1.4 percent this year.
``The German recession has begun in earnest and it's very serious,'' said Holger Schmieding, chief European economist at Bank of America Corp. in London. ``It raises the risk of a German contraction of more than 1 percent next year and we will have to revise down our forecast for the euro area as well.''

BRUSSELS, Nov 13 (Reuters) - The European Union cannot deal with the financial crisis effectively if multinational banks are regulated solely by their home countries, European Central Bank Governing Council member Ewald Nowotny said on Thursday. Nowotny, who headed the rescue of Austrian bank BAWAG after a financial scandal two years ago, said he preferred a slow movement to a European Union-wide supervisor which gave a strong role for national regulators.

. …. until European Union countries can agree on a joint fund or binding commitments to bail out multinational banks, most regulation will have to remain nationally based. Better informal cooperation between national regulators would help deal with the difficulties of regulating multinational banks, he added. (Reporting by Marcin Grajewski and Ilona Wissenbach, writing by David Milliken, editing by Patrick Graham)

EURUSD Theory said :

WAVE MULTIPLES
Motive Wave Multiples Lesson 12 mentioned that when wave 3 is extended, waves 1 and 5 tend towards equality or a .618 relationship, as illustrated in Figure 01 a below. Actually, all three motive waves tend to be related by Fibonacci mathematics, whether by equality, 1.618 or 2.618 (whose inverses are .618 and .382). These impulse wave relationships usually occur in percentage terms. For instance, wave I from 1932 to 1937 gained 371.6%, while wave III from 1942 to 1966 gained 971.7%, or 2.618 times as much. Semilog scale is required to reveal these relationships. Of course, at small degrees, arithmetic and percentage scales produce essentially the same result, so that the number of points in each impulse wave reveals the same multiples.

pic 01 a b c

Another typical development is that wave 5's length is sometimes related by the Fibonacci ratio to the length of wave 1 through wave 3, as illustrated in pic 01 b, which illustrates the point with an extended fifth wave. .382 and .618 relationships occur when wave five is not extended. In those rare cases when wave 1 is extended, it is wave 2, quite reasonably, that often subdivides the entire impulse wave into the Golden Section, as shown in pic 01 c.

As a generalization that subsumes some of the observations we have already made, unless wave 1 is extended, wave 4 often divides the price range of an impulse wave into the Golden Section. In such cases, the latter portion is .382 of the total distance when wave 5 is not extended, as shown in pic 02 a, and .618 when it is, as shown in pic 02 b.
This guideline is somewhat loose in that the exact point within wave 4 that effects the subdivision varies. It can be its start, end or extreme counter-trend point. Thus, it provides, depending on the circumstances, two or three closely-clustered targets for the end of wave 5. This guideline explains why the target for a retracement following a fifth wave often is doubly indicated by the end of the preceding fourth wave and the .382 retracement point. (quote EWP p:136-137)

pic 02 a b

EURUSD Projection :
Current Price : 1.2751
As you can see that wave I and wave III are normal impulses, there is only alternation in each. The highest wave IV on 38.2% (1.3301) is normal retracement for this wave. We can expect the wave V to be extended.

According to the theory we may conclude this pattern is going go down very deep to 1.618% (see pic 01 b) which end to 0.7509 (what the hell..@#%!!).


But our policy is taking short of this gradually
#1 go short to 1.2637
#2 go short to 1.2330
If it breaks the lowest we go short to 1.1736 and then wait for any confirmation.
And please remember this, from the current price wave IV still have a chance to go up to 1.3882 depend on any news released.
Use it with your DOD....and breakin' thru to the other side...yeaaah.!!