An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 0.9432
[B]Resistance:[/B]0.94600.94850.94990.9545[B]Support:[/B]0.94080.93840.93650.9332
[B]Bias:[/B]While 0.9460-85 caps we should see a pullback at least
[B]Daily Bullish:[/B]Price maintained its upward momentum to break above 0.9399 and come to a halt just below the next target at 0.9460. A bearish divergence has developed and should imply a correction at the very least. Indeed, any pullback should be viewed as a correction only. Thus only directly above 0.9460-85 would cause extension higher through 0.9499 and to 0.9545. Take care as this could cap. [B]MT Bullish:[/B]The 0.9460 has stalled progress but it doesn’t look as if the larger rally has peaked. Thus while 0.9236-53 area supports we should see further gains above 0.9460 for 0.9545 minimum and at most 0.9685. ([B]28th February[/B])[B]Daily Bearish[/B]Having reached the 0.9460 resistance amid a bearish divergence I do feel a correction is likely. Do be aware of the small risk of seeing 0.9477-85 first. However, the main direction should be lower today with a breach of 0.9403-08triggering follow-through to 0.9365 which should cause a small reaction. Overall though I still feel the downside has a little way to go with loss of 0.9365 seeing a move down to 0.9332, 0.9300 and over time to 0.9236-53. [B]MT Bearish:[/B]We should be seeing further gains but in the meantime we are likely to see a correction to 0.9236-53 at the most. Thus only below here would cause direct losses to 0.9190 – probably lower. ([B]28th February[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]28th February[/B]
The break above 0.9399 means that the 0.8511 low was a corrective low and thus we are seeing what I feel is a 3-wave rally. The Wave equality target in Wave © is at yesterday’s 0.9460 high. However, I also note that 0.9477 is a 261.8% projection in Wave –iii-.
Thus we should now see a correction in Wave-iv- that should be quite shallow given Wave –ii- was deep. This should keep the retracement to the 38.2%-41.4% retracement area between 0.9236-53. Also note the last Wave b support at 0.9365 which should produce a reaction of some kind.
[B]Ian Copsey[/B]
[B]See Also[/B]
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[li]FX-Strategy Pro Commentary[/li]Comprehensive analysis to guide you through the trading day[/ul]