An excerpt from FX-Strategy’s Pro Commentary
[B]Bias:[/B]I suspect we are in a 156.96-158.00 range
[B]Daily Bullish:[/B]The peak at 158.27 appears to point to a triangle structure. This would imply losses back to the 156.96-00 area from where we should get a recovery that should move to the 157.90-00 area which should cap. Thus only above 158.00 and 158.27 would trigger stronger gains to 158.65-81 and probably further to 159.60 at least. Next resistance is at 160.42.[B]MT Bullish:[/B]No sustained break yesterday and this does seem to imply that we may have to wait for gains. Thus only back above 158.27-65 will trigger a retest of 159.60 and probably 160.42. ([B]7th September[/B])[B]Daily Bearish:[/B]The peak at 158.27 suggests a triangle that would have the next base at 156.96-00 and would be followed by a recovery. Thus any further bearish stance will require breach of 156.96 which would then attack the 156.53 low and probably cause follow-through for 156.21 and 155.71. Only below there opens up the way for a larger move to 154.44-51.[B]MT Bearish:[/B]With 159.60 reached we could be seeing a deeper correction but this will require a break below 156.69 for 155.60-71 and at most the 154.42 area. ([B]6th September[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
The pattern is extremely vague, but the short term peak at 158.27 was a 76.4% projection in a minor Wave ^c and thus the next move should be to the 66.7% projection in Wave ^d at 156.96-00.
This should be followed by a small recovery in Wave ^e before seeing additional losses but may well still fit into a flat correction back to the 154.44-51 area.
Only a break now back above yesterday’s high at 158.27 would cause a more bullish pattern.
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