An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 106.45
[B]Resistance:[/B]106.80107.08107.40107.79[B]Support:[/B]106.20106.07105.65105.42
[B]Bias:[/B]While 106.20-30 supports we should move to test the 107.40-79 area before pulling back
[B]Daily Bullish:[/B]The loss of 106.32 did indeed cause a move below 105.60 and down to the 104.95 support which held perfectly. I suspect therefore that we are now seeing the beginning of a correction higher. We appear to have seen the majority of the first leg but while 106.20-30 continues to support there is still room for gains towards the 107.40-79 area but we should expect a pullback. Only above 107.80-90 would maintain the upward momentum for a direct rally to 108.40 and 108.96. [B]MT Bullish:[/B]Having seen the 104.95 target hold I think we’ll get a period of correction that has potential to 108.00 and then 108.96 and probably 109.80. It probably won’t be seen but further resistance is seen at 110.94. ([B]24th January[/B])[B]Daily Bearish:[/B]With a firm bullish divergence in the 4-hour chart and a bounce from the 104.95 target I feel the downside is limited. I suspect we should see a move initially to the 107.40-79 area and that should provide a selling opportunity for a correction lower. Only an earlier break below 106.20 would threaten an earlier pullback to 106.07 and probably the 105.65-75 area which should hold. Further support is at 105.42. [B]MT Bearish:[/B]We have seen 106.57 so far and I suspect 106.22 is possible before a correction. Only below highlights direct risk to 105.60 and 104.95 but this should cause a larger pullback. ([B]16th January[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]24th January[/B]
Cautiously I think we can firm up the end of Wave –v- at the 76.4% projection at 104.95. I feel this may only be Wave A of a new ABC decline but it should generate a correction in Wave B in the meantime.
A 50% retracement lies at 109.80 and a 61.8% at 110.94.
I feel we may see a small extension this morning in Wave –a- of the correction to the 107.40-79 area which should then trigger a correction.
I would caution here that this may not be a very quick correction and therefore we risk either a long Wave –b- or the development of a double zig-zag or triple three in this Wave B.
[B]Ian Copsey[/B]
[B]See Also[/B]
[ul]
[li]FX-Strategy Pro Commentary[/li]Possibly the most detailed analysis available[/ul]