Commentary: In Elliott, our job is to follow the pattern and trade accordingly. As the pattern evolves, so too should our strategy. We have favored the bear side near term recently due to the idea that larger wave B within an A-B-C correction from 1.4966 is complete at the 50% of 1.4966-1.4525 (wave A). This remains our favored count unless price pushes through 1.4750. If that happends, then wave B is a more complex correction itself, with a triangle as b of B, as shown in the chart above. In summary, remain bearish for the drop to the 1.4400’s against 1.4750. If 1.4750 gives way, then price is likely to test at least the 61.8% of A at 1.4800 and maybe the 78.6% at 1.4873.
Strategy: Bearish now, against 1.4750, target 1.4360