An excerpt from FX-Strategy’s Pro Commentary
[B]Bias:[/B]Care – there is daily trend support at 1.9910-20 and only below extends to 1.9809
[B]Daily Bullish:[/B]Break of 2.0070 has certainly caused additional losses and it is hard to get in the way of these but take note of the daily support line around 1.9910-20. While this holds there is a possibility we may see a bounce – albeit temporary. Back above 1.9941 would allow a move back to 1.9968 which risks a pullback. Any move above 1.9970 would allow a test back towards 2.0027-58 and maximum 2.0085-00. [B]MT Bullish:[/B]Break of 2.0070 has taken away any chance of a larger recovery. Thus treat gains as pullbacks only. Above 2.0100 and 2.0200 is required to get more bullish. ([B]15th August[/B])[B]Daily Bearish:[/B]Loss of 2.0070 generated losses that saw only a brief correction at 1.1974-96 but is approaching a daily trend support around 1.9910-20. Take care. Only look for stronger losses on a break below 1.9900 – and attempt to sell any pullback towards 1.9910-20. On this loss I suspect we should see losses progress to 1.9872 (which may cause the pullback to 1.9910-20) and then eventually to 1.9809 which should provide a better correction – again to that trend line. [B]MT Bearish:[/B]Loss of 2.0070 has seen losses almost reach the first major support at 1.9902. Only below extends to 1.9809 where a correction is possible ahead of losses towards the 1.9620-30 area. ([B]15th August[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
Right – no expanded flat which makes the 2.0461 high Wave [ii]. A 138.2% projection rests at 1.9809 while a larger 223.6% projection lies at 1.9713 which is close to the 161.8% projection in Wave [c].
In the way is the daily trend support at 1.9910-20 which should be ignored and could cause a pullback before the losses are seen.
Overall I’d expect the downside to reach close to the daily Wave (b) low at 1.9621 over the coming 1-2 weeks.
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