An excerpt from FX-Strategy’s Pro Commentary
[B]Bias:[/B]We should see the correction move to 1.0615 & after a correction lower to 1.0519 & possibly 1.0477
[B]Daily Bullish:[/B]The 1.0685-00 resistance capped perfectly and this should cause a pullback. Thus a stronger bullish stance will require a break above the 1.0700 peak and if seen would trigger extension towards 1.0733 and maximum 1.0757. [B]MT Bullish:[/B]With this type of strength it implies a correction to the drop from 1.1850 to 1.0339. This would suggest that above 1.0700 would bring additional gains to 1.0954 at least and maximum 1.1082. ([B]July 30th[/B])[B]Daily Bearish:[/B]The peak at 1.0685-00 does appear to have completed an initial wave higher and thus we should be expecting a pullback lower. The first support comes in at 1.0615 and I feel this should provide a correction higher. Only look for additional losses (which I feel will come) on a break of 1.0615 and if seen the next support is then found at 1.0561 followed by 1.0519. [B]MT Bearish:[/B]I now need to assess the larger implication of the stronger rally. However, for now I feel there is room for a pullback from the 1.0685 area and will watch 1.0471-1.0512 initially. ([B]July 30th[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
Friday’s gains just do not fit into a decline to new lows at this time and thus I am forced to consider that we have seen the end of a daily Wave –iii- at 1.0399 and as such we need to see how Wave –iv- will develop.
In the rally from 1.0339 I see a 261.8% projection in Wave c at 1.0685 and suspect this should provide a temporary top for now.
Only above would raise the larger 41.4% retracement in daily Wave –iv- at 1.0954 and the 50% at 1.1082. Until then we need be aware of a messy multi-week choppy series of ABC moves.
A 5-wave move ended at 1.0699 and thus look for support at the 50%-61.8% retracement at 1.0477-1.0519.
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