An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 2.0565
[B]Resistance:[/B]2.05802.06092.06502.0680[B]Support:[/B]2.05482.05152.04862.0464
[B]Bias:[/B]Slightly mixed – waiting for breaks
[B]Daily Bullish:[/B]The 2.0678 high did indeed provide a high and this would suggest a move back to 2.0523 at least. However, I suspect this correction can be a little more complex and thus we could easily see price move right back to the 2.0678 high once again. Thus watch the 2.0523 low (allow for a small breach.) A move back above 2.0550-80 would provide the impetus for this move back to the 2.0678-85 area. Just in case also watch the 2.0464 which could also hold within an expanded flat and cause a move to the same area.[B]MT Bullish:[/B]Losses have really broken down the possibility of stronger gains. Indeed, only back above 2.0731-60 would see a stronger move to 2.0842 and maximum 2.0969. ([B]1st December[/B])[B]Daily Bearish:[/B]We did see the 2.0678 peak hold to generate losses that have stalled just above the 2.0523 low. I am just a little mixed as to where this will stall but I have doubts that we shall see a stronger decline at this point. We need to observe the 2.0523 low and also the 2.0464 support. Only below this lower level would imply losses all the way back down to 2.0352-70 but then cause a pullback.[B]MT Bearish:[/B]The picture still looks bearish and any move below 2.0464 will press the 2.0352-70 area and after a correction we should see a final break lower for losses to 1.9877 at least. ([B]4th December[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]3rd December[/B]
The wave structure is a little unclear but I suspect we are seeing a Wave a of Wave –i- lower within a larger Wave –c- decline. A 50% pullback in Wave –b- will depend on the low seen in Wave –a- but should be no more than using the 2.0532 low – thus max 2.0682-99 which is where the previous minor Wave iv peak rests.
[B]5th December[/B]
The 2.0678 high may have been enough to see the Wave b high but we should also be aware of the chances of a flat correction in Wave b or an expanded flat (base at the 38.2% expansion at 2.0464) both of which would imply a retest at 2.0678. Ultimately this will still suggest a wave equality target in Wave c at 2.0370 to complete Wave –i-.
[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]