An excerpt from FX-Strategy’s Pro Commentary
Bias:While 1.3151-56 supports there is room for gains to 1.3218-28 & then 1.3258 again
Daily Bullish:The break finally came of 1.3140 which then went to test the next resistance at 1.3177 and just a few points above. We have to be a little careful with the 1.3184 high so close to a Fibonacci retracement at 1.3177 but while the 1.3151-56 area supports it should set up a move to the 1.3218-28 area which should cap for a second retracement back to the 1.3175-85 area ahead of a final move to the 1.3258 area from where a larger pullback can be expected. MT Bullish:There is still a slight smell of uncertainty here but only back above 1.3177 would trigger gains to 1.3258 again and eventually 1.3367 which is the maximum we would expect. 1.3050 must support. (March 6th)Daily Bearish:The 1.3177 resistance has only been marginally broken and thus we should still keep a possible bearish move in mind. This should mean that yesterday’s 1.3184 high should remain intact and from here we see a break back below 1.3150. If seen it will raise the chance of a move all the way back down to 1.3071-80 at least and possibly the 1.3044-50 pivot support. This lower area should produce a pullback before additional losses.MT Bearish:Losses over Friday and today appear to put the bias in favor of continued losses below 1.3048 and down to the 1.2923-48 area in a triangle and where a recovery should be seen. (March 5th)
ELLIOTT WAVE COMMENTS
Yesterday’s move didn’t clarify much at all. The 1.3140 level is a 50% pullback in a possible Wave x. For this to generate losses within the triangle would require a break of the 1.3050 pivot support towards the 61.8%-66.67% projection in Wave ^c in the 1.2923-48 area.
We have added the alternative labeling where the 1.2865 was a flat Wave A from where we have seen a double zig-zag higher to 1.3258. On the assumption that a second Wave –x- can remain above the 1.3050 pivot support it is still possible that we get a third ABC move to the 1.3367 high.
Yesterday’s gains could mean we are seeing the final ABC pattern higher but we need a break of yesterday’s high which is only 7 points above a 76.4% retracement level.
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