An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 0.8503
[B]Resistance:[/B]0.85350.85570.85820.8618[B]Support:[/B]0.84940.94690.84330.8403
[B]Bias:[/B]While 0.8535 caps look for a test of 0.8403-33 before higher
[B]Daily Bullish:[/B]Losses were much more aggressive than anticipated, dropping below 0.8609 and has reached 0.8469 thus far. Indeed, while 0.8535 caps there is room for a test of the 0.8403-33 support area. Watch for a bullish divergence to develop and if seen it would heighten the chance that we’ll see a base around this support zone. A move back from here would make it back to 0.8535 which should cause a small pullback before pushing higher again to 0.8555-60 and possibly 0.8582. Stronger resistance is at 0.8653.[B]MT Bullish:[/B]The depth of the pullback is of a larger daily corrective depth and thus while I feel we should see a base around 0.8403-33 to generate upside I feel that it may just only provide a larger sideways consolidation. ([B]July 30th[/B])[B]Daily Bearish:[/B]While 0.8776-97 did capped and cause losses these were much stronger than anticipated and appears to be forming a larger daily correction within the weekly uptrend. I see support at 0.8403-33 and tentatively feel this will develop a base. Any stronger bearish stance will require break of 0.8403 and if seen would extend losses down to 0.8370 minimum and potentially the 0.8331-54 area. [B]MT Bearish:[/B]Loss of 0.8609 did indeed generated strong follow-through but I see what feel will be a base around 0.8403-33. Only below 0.8370 and then 0.8331 would imply continued losses. ([B]July 30th[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]30th July[/B]
The aggressiveness and depth of the pullback must imply the 0.8870 peak was a daily Wave –iii- and thus we are seeing a daily Wave –iv- develop. Indeed, looking at the daily chart it would appear more likely that this will develop as a larger sideways consolidation, possibly as a triangle or flat correction.
A 166.7% -176.4% projection in Wave –c- lies at 0.8403-33 and I suspect this will complete the current downside and force a correction back higher and should initially target the prior Wave –b- at 0.8766.
[B]Ian Copsey[/B]
[B]See Also[/B]
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