An excerpt from FX-Strategy’s Pro Commentary
Bias:The structure is still a little unclear but price appears to have broken the uptrend & should see losses
Daily Bullish:The 0.8475 high forced a slightly deeper pullback. I can’t say the wave structure is that clear but I have been expecting three waves to take us up to 0.8594. I also note that the decline to 0.8385 has broken below the series of lower highs and this could therefore suggest a deeper pullback. Thus for the upside to extend directly we’ll need a break above 0.8454 to return to 0.8475 with the next resistance at 0.8509 which for now I feel may just cause a second pullback. MT Bullish:We have seen an aggressive break above 0.8390 and this should imply an eventual test of the 0.8594 level. The route to that target is a little unclear but watch resistance at 0.8461-88 – and below there 0.8444. (June 6th)Daily Bearish:The pullback from the 0.8475 high has broken below the 0.8398 corrective low and this appears to break the sequence of higher lows. Thus I feel there is a risk of a correction from here. While 0.8454 caps the downside can return to the 0.8385 low and while this could cause a second pullback a break below here would extend the downside to 0.8345-55 at least. Watch this with some care. Further support is then found at 0.8319 and maximum 0.8282.MT Bearish:Gains have been strong and the structure implies additional gains. However, there is an earlier risk of a move back to 0.8282-0.8319 but only below 0.8280 would highlight the risk of stronger losses. (June 8th)
ELLIOTT WAVE COMMENTS
The breach of the 0.8398 low implies the possibility of a deeper pullback due to the break of the last significant corrective low in the sequence of higher lows in the trend.
I also expect the rally in Wave [v] to come in three waves and as such I have labeled the 0.8475 high as Wave [a] and thus we can generate potential supports in Wave [b] at 0.8355 (38.2%) and 0.8319 (50%) and at most the 0.8282 level (61.8%).
A 61.8% projection in Wave [v] implies a target of 0.8594 which is also where a daily Wave (iii) has a target.
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