An excerpt from FX-Strategy’s Pro Commentary
[B]Bias:[/B]While 168.30-35 supports the bullish structure for 169.34 and 169.70-77 remains intact
[B]Daily Bullish:[/B]The break above 168.50 has been encouraging and while the 168.32 area continued to support in any pullback the structure will remain bullish. Note the trend support around 168.30. A move back above 168.80 would extend the upside to 169.34 and following a correction to 169.70-77 which should cap for a larger reversal. [B]MT Bullish:[/B]The wave structure is clouded but with the support line close below we really need a direct rally to see a move to the 169.70-77 target else we could see a larger correction lower. ([B]July 19th[/B])[B]Daily Bearish:[/B]While the bullish structure appears to have the upper hand I also note a major support line resting at 168.30-32. Any breach of this line would look quite bearish. If seen look for the downside to extend to 168.05-10 and probably to the 167.70 corrective low en route 167.10 and probably 166.63. [B]MT Bearish:[/B]The upside continues and this appears to target the 169.70-77 area from where I feel a larger decline can develop. Only an earlier move below 168.00-40 would suggest earlier losses to 167.80 and then 166.49. ([B]July 13th[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
The sideways correction still appears to be in a strange part of the wave structure. I still prefer the 169.70-77 target but we need price to remain above the support line from 161.49. This will require a break above 168.50 and 168.93 which should allow a test of the 76.4% projection in Wave –v- at 1169.70-77 which is also where Wave –c- will equal Wave –a-.
Any earlier dip below 167.70-90 – below the trend support – would appear to open the way for stronger losses that should quite quickly reach the prior Wave –b- at 164.22.
The support line is now around 168.30 and only below negates the rally to 169.70-77.
[li]FX-Strategy Pro Commentary[/li]The trader’s friend[/ul]