An excerpt fromFX-Strategy’s Pro Commentary
[B]Price:[/B] 1.0089
[B]Resistance:[/B]1.01051.01261.01551.0188[B]Support:[/B]1.00741.00301.00030.9986
[B]Bias:[/B]Mixed – waiting for breaks
[B]Daily Bullish:[/B]The break of 1.0101 has complicated the picture. While it does seem to suggest upside risk we have not broken through the key 1.0132 resistance and there is a bearish divergence. Thus before getting too bullish we’ll need to see a break back above 1.0126-32 and if seen then the picture will confirm follow-through to 1.0155 and probably to the 1.0212 level at least. Take care there. Further (stronger) resistance is found at 1.0262-85. [B]MT Bullish:[/B]I had though the break above 1.01 would be directly bullish but conditions aren’t 100% bullish. Above 1.0132 would see 1.0262-85 at least. Only breach would extend back to 1.0376. ([B]8th February[/B])[B]Daily Bearish:[/B]I want to still keep an open mind here as there is a bearish divergence and I see resistance at 1.0132 – although I had thought the wave structure would look unbalanced if we saw this deep a correction. To re-instate the bearish stance we’ll need to see a break below 1.0030-42. If seen then watch for follow-through to 0.9986 at least. Next support is found at 0.9916-20. [B]MT Bearish:[/B]The 1.0126 high is stretching the bearish structure. Back below 1.0030 and then 0.9986 would suggest a move down to 0.9871 and later towards the 0.9730-55 area. ([B]8th February[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]8th February[/B]
I had thought that the Wave –iv- shouldn’t see such a deep correction. The 50% retracement lay at 1.0094 and 58.6% at 1.0132. However, with a bearish divergence forming I want to keep options open as a 76.4% projection in Wave –v- from yesterday’s peak comes in at 0.9730 and would perfectly complete an expanded flat correction in Wave B.
Above 1.0132 therefore would suggest potential for an irregular triangle which has 61.8%-66.7% projections at 1.0259-85.
[B]Ian Copsey[/B]
[B]See Also[/B]
[ul]
[li]FX-Strategy Pro Commentary[/li]Unique, comprehensive and insightful analysis[/ul]