An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 0.8761
[B]Resistance:[/B]0.87880.88020.88260.8850[B]Support:[/B]0.87500.87290.87090.8681
[B]Bias:[/B]Mixed – waiting for breaks but I suspect a pullback to 0.8802-26 before lower
[B]Daily Bullish:[/B]I took one look at the chart here and wondered what is going on. I suspect that it could just be a irregular triangle in which the low seen yesterday at 0.8709 appears to be a possible stalling point for a correction before additional losses. This being the case we should watch resistance at 0.8802-26. Much above this area would begin to reverse the picture higher again. If a break of 0.8850 is seen then look for a return to the 0.8894-0.8918 area.[B]MT Bullish:[/B]If the triangle scenario is incorrect then a break above 0.8826-50 would retest the 0.8918 high and probably cause follow-through to Fibonacci retracements at 0.8961 and 0.9025 at least. ([B]12th December[/B])[B]Daily Bearish:[/B]The sharp reversal lower from 0.8894 clearly wasn’t expected but if I have to fit this into a pattern then I feel we could be seeing a (messy) triangle develop. On the assumption that 0.8709 was a low we should see pullback to the 0.8802-26 area which I feel will cap and then cause additional, and larger, losses. Direct loss of 0.8709 would see 0.8681 at least while a breach of the 0.8642-51 area is needed to extend losses more aggressively. [B]MT Bearish:[/B]If the triangle scenario is correct then look for 0.8802-26 to cap with a subsequent loss of the 0.8651 low causing much stronger losses. Targets will be calculated once we established the triangle end. ([B]12th December[/B])
[B]ELLIOTT WAVE COMMENTS[/B]
[B]12th December[/B]
What a mess… I can only assume that Wave B is developing in an irregular triangle and on the assumption that 0.8709 was Wave d of that triangle then we should see a maximum of 0.8802-26 in Wave e before the downside breaks more strongly lower.
Back above 0.8826-50 would bring the upside back into play and aim for Fibonacci retracements of the 0.9399 -0.8651 decline at 0.9025 being a 50% retracement.
[B]Ian Copsey[/B]
[B]See Also[/B]
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[li]FX-Strategy Pro Commentary[/li]Unique and insightful analysis[/ul]