Commentary: We wrote last week that “given the ease with which Cable took out 2.0020, it is likely that we?ll see a test of 2.0203 (161.8% extension).” The pair has tested this level and Cable is in a potential reversal zone. There are a few different valid wave counts at the current juncture but the one that we favor labels the entire decline from 2.0654 as large wave A.
The rally since is large wave B (although the rally from 1.9651 could just be the first leg of wave B). Resistance should be strong near current levels, which is 2.0153 and 2.0271 (50%-61.8% of 2.0654-2.0153). The mentioned 161.8% is also at 2.0203 (middle of the fibo zone) and this is a previous congestion area. Strategy: Bullish targets hit (flat)