An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 0.8877
[B]Resistance:[/B]0.88920.89160.89340.8956[B]Support:[/B]0.88900.88120.87930.8755
[B]Bias:[/B]I suspect 0.8892 should cap for additional losses
[B]Daily Bullish:[/B]In the end the rally stalled at 0.8992 from where we have seen a good degree of weakness. I suspect this should cause additional losses. Thus to provide any hope of a return higher we shall need to see a break back above the 0.8892 resistance and if seen this should provide lift for 0.8934-68 which should provide a barrier for a while. Next resistance is at 0.9012-15. [B]MT Bullish[/B]Yesterday’s break below 0.8893 may well be the pullback I wondered whether would occur. Thus only back above 0.9077 now would keep the direct route to 0.9240-70 intact. ([B]17th October[/B])[B]Daily Bearish:[/B]Loss of the 0.8888-92 support does give a more bearish look to the wave structure. While 0.8892 caps we should see these losses extend towards the 0.8793-0.8815 support but may stall. Only below extends losses onto 0.8755-67 at least and potentially lower. Next support is at 0.9734 and 0.8685. [B]MT Bearish:[/B]This move lower may provide the opportunity for the last larger correction to develop ahead of the expected rally to 0.9250. There is risk to 0.8564 and possibly 0.8475… ([B]17th October[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]22nd October[/B]
Wave x stalled just below the 76.4% retracement at 0.9015 and from the 0.8992 high the losses have been quite strong.
This should be a decline in Wave –a- which has support around 0.8793—0.8815 where a Wave –b- should develop before losses in Wave –c-.
If so, then we could see losses to the 50% retracement at 0.8564 while a 58.6% retracement is not out of the question at 0.8475.
However, any direct break above 0.9015 and then the 0.9077 high would imply direct gains to the 0.9240-70 target.
[B]Ian Copsey[/B]
[B]See Also[/B]
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[li]FX-Strategy Pro Commentary[/li]Unique and insightful analysis[/ul]