An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 107.94
[B]Resistance:[/B]108.21108.48108.60108.98[B]Support:[/B]107.84107.55107.10106.95
[B]Bias:[/B]While 107.55-84 supports there should be room for gains to 108.90 else see a drop to 106.95
[B]Daily Bullish:[/B]The break back above the 107.56 provided a solid lift which has reached 108.21 thus far. While 107.55-84 supports we should see this move further. Take care at 108.48 as this could cause a slightly deeper pullback. Breach extends to 108.90-98 but this is expected to cap if seen. Next resistance is then found at 109.36 and stronger at 109.80-84. [B]MT Bullish:[/B]Gains have continued to be very slow but I retain a bullish stance for 109.80 minimum and probably just above 110.00 but whether it can get to 110.94 is uncertain with the next leg lower expected to begin. ([B]26th February[/B])[B]Daily Bearish:[/B]Yesterday saw gains as preferred and I suspect these should continue. The only risk is if we see a breach of the 107.55 level which would tend to undermine the direct rally and cause slippage to 107.10-20 at least and potentially 106.75-95. This should hold. Only below reverses once again for 105.69 and eventually 104.95. [B]MT Bearish:[/B]So far we have seen the pullbacks remains above 106.33 but I have seen one other scenario that would still allow 105.34-69. Thus only below this area would trigger direct losses through 104.95 to 103.44. ([B]25th February[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]25th February[/B]
Wave relationships haven’t been that great and it means we still need to watch this erratic currency pair closely.
If Friday’s 106.71 was the end of Wave b then we need a break back above the minor Wave iv of Wave c of Wave b at 107.56. If seen it should then trigger gains in Wave c higher towards the wave equality target at 108.90-98 which is where Wave B will have retraced by 41.4%
The other structure is a possible expanded flat in Wave x and this would imply a move back to the 105.69 Wave efa low – maybe just below before seeing gains.
Until then keep in mind the 50% retracement in Wave B at 109.80 and the 61.8% retracement at 110.94.
[B]Ian Copsey[/B]
[B]See Also[/B]
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[li]FX-Strategy Pro Commentary[/li]Unique, insightful and comprehensive analysis[/ul]