An excerpt from FX-Strategy’s Pro Commentary
[B]Bias:[/B]Care – this is beginning to look bearish – but wait for break of 1.0500
[B]Daily Bullish:[/B]The break back below the 1.0554-61 area doesn’t really help the bullish scenario at all. If this is to redevelop we still need a break back above 1.0541-47 and if seen it should help price back above 1.0590 towards 1.0670-1.0704. This should cap for a small correction. [B]MT Bullish:[/B]We saw a pullback from 1.0581 which is frustrating and we still need the 1.0460-70 area to now hold to retain a bullish structure for 1.0655-76 and probably 1.0766 and then 1.0865. ([B]10th September[/B])[B]Daily Bearish:[/B]With the 1.0554-61 area failing to support the emphasis has returned to the downside. However, let’s take this step by step, but a break below 1.0500-04 would appear bearish – first for a retest of 1.0460-70 and once this breaks we should see stronger losses down to 1.0400 at least and eventually down to the 1.0319-39 area at least. Further support is found at 1.0280. [B]MT Bearish:[/B]If we see the 1.0460 level give way we are likely to see a dip back to the 1.0339 low and at most 1.0280 which I feel will hold. ([B]5th September[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
Price action has been very frustrating here, failing to sustain a break in either direction but it does look as if this stalemate should end soon.
A move back above 1.0541-47 would raise the chances that we are seeing a Wave –a- of Wave –iii- developing higher. This should easily break the Wave –i- at 1.0676.
However, there is still the bearish structure which is beginning to look more balanced. This would have the 1.0676 as Wave (b) and thus the decline to 1.0480 is Wave I followed by an expanded flat Wave ii to 1.0590 and thus we can then project a break below 1.0500 to a 138.2% projection at 1.0319-39.
[li]FX-Strategy Pro Commentary[/li]Unique, comprehensive and insightful analysis[/ul]