An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 2.0781
[B]Resistance:[/B]2.08222.08432.08612.0881[B]Support:[/B]2.07762.07402.07042.0641
[B]Bias:[/B]Mixed - waiting for breaks
[B]Daily Bullish:[/B]Gains have proceeded much faster than expected and reached to just below the 2.0828 resistance. We have a bearish divergence in place and this does warn of a possible reversal lower, which given the proximity of the larger 2.0957 target, I would prefer to see. Thus only while the 2.0740-45 support holds to cause a retest of 2.0822 would I look for an additional leg higher to the 2.0861 resistance but feel this should cap. Next resistance is then found at 2.0920 and 2.0957. [B]MT Bullish:[/B]The break higher looks certain to reach the 2.0728 target but is also more likely to break above for 2.0782 and 2.0881 en route an eventual target at 2.0957. ([B]31st October[/B])[B]Daily Bearish:[/B]Strong gains seen but also a bearish divergence. It is too early to confirm but does warn of a possible larger reversal. While 2.0822 remains the high and we see a dip below this morning’s 2.0776 low we should then see a test of the key 2.0440-45 support. This needs to break to keep the pressure lower towards 2.0704 and probably all the way down to 2.0641 and eventually 2.0540. [B]MT Bearish:[/B]I think we’re approaching a key high, but not quite yet. There may well be room for a slightly deeper correction that could possibly see 2.0540 and as much as 2.0450 but only below 2.0389 reverses totally. ([B]1st November[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]1st November[/B]
I still retain the 66.7% daily Wave (v) target at 2.0957 though we are approaching much faster than I had anticipated.
I made a small miscalculation yesterday with the projection in Wave –iii-. A 166.7% projection was seen at 2.0822 while a 176.4% projection is at 2.0861. Thus we should get a pullback from this broad area. Indeed, this should be quite deep as we can expect a full 50% pullback in Wave –iv- that currently would imply a target at 2.0453. A 41.4% retracement is at 2.0540.
Any more direct move higher would mean we should watch the 2.0957 area.
[B]Ian Copsey[/B]
[B]See Also[/B]
[ul]
[li]FX-Strategy Pro Commentary[/li]Unique, comprehensive and insightful analysis[/ul]