An excerpt from FX-Strategy’s Pro Commentary
[B]Bias:[/B]While 0.8221-26 caps there does still seem room for losses to 0.8148 at least
[B]Daily Bullish:[/B]Losses have developed which have dipped just below the lower 0.8181-87 support and there do look to be more to come. Only an earlier break above 0.8221-26 would bring relief to the downside and allow a recovery back to 0.8250-55 and probably the 0.8285 area which does appear to have strength to cap for a moment. Next resistance is at the 0.8333 high. [B]MT Bullish:[/B]I still favor the downside for the moment and only a break back above 0.8285 would retest 0.8333 and then higher still. ([B]10th September[/B])[B]Daily Bearish:[/B]Losses were seen to 0.8171 this morning and this has held. There is now resistance at 0.8221-26 and while this caps there is an argument for additional losses. From that resistance a move back below 0.8172 would allow a move to the 0.8148 level. Take care as this could hold. Only below extends to 0.8105 which should cause a pullback at the very least. [B]MT Bearish:[/B]I’d still prefer the larger retracement to reach 0.8003 but maybe this is too much. Only below 0.8170 would raise this as a possibility with next support at 0.8105 and then the 0.8050 low. ([B]7th September[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
I can’t yet say the bearish stance for 0.8003-50 has broken down but we need the 0.8333 peak to remain intact to at least revisit the 0.8050 low in a flat Wave (x).
It looks as if we may have seen a Wave x at 0.8309 and from there a further ABC decline is expected to finally reach 0.8003 being the 50% pullback in Wave (x).
For now we should see a small 50% correction at 0.8221 caps and allow losses back to 0.8148 and possibly as far as 0.8105-25 in Wave –a-.
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