.886 is derived from square roots.
A quick review:
Frequency of a string is:
- proportional to the square root of it’s length
- inversely proportional to the square root of it’s tension
Here’s the frequencies of the equal octave scale of music:
the GOLDEN MEAN is 1.618
square root of 1.618 is 1.27
1/1.27 = .786
square root of .786 = .886
1/.886 = 1.128 sure looks very very close to musical note D, hugh? Coincidence, I know.
So, to the EURO ….
- daily bullish divergence
- nice 90 day (basic) cycle coming in
- .886 retrace (note how it reacted after every .886 retrace shown (blue shaded rectangles)
- personally was waiting for the 1.27 extension pattern but today’s action doesn’t look like it want’s to get down there.
Conclusion: extremely bearish big picture for the EURO but an A-B-C three wave rally should occur in the coming days.