An excerpt from FX-Strategy’s Pro Commentary
Bias:There appears to be risk for a test of 1.0895-16 but from there expect a reversal lower
Daily Bullish:I think I’m beginning to see the wave structure here. This appears to suggest we still have minor gains to be seen towards the 1.0895 (max 1.0916) area but that should be tops. Thus only a break above 1.0916 would trigger a stronger reaction higher towards 1.0944 and max 1.0964. MT Bullish:Further losses keep the downside intact. Thus only above 1.1005 would allow a move back towards the 1.1062 corrective high. (May 22nd)Daily Bearish:I had a long look at the cycles yesterday and while there we should soon be seeing a correction higher the wave structure still suggests a peak around 1.0895-16 and while this caps I feel we’ll see the downside come under pressure towards below 1.0850 and then 1.0825 low. The target for this part of the decline should be around the 1.0780 area where I feel a correction can be seen. MT Bearish:While 1.0920 caps the wave structure still suggests losses down to 1.0724 but expect a larger correction from there. (May 23rd)
ELLIOTT WAVE COMMENTS
I had a good look at the wave structure and it appears as if the larger picture still looks for losses through to early next year. However, I don’t think we’re too far off a larger correction.
Right now I see a potential 261.8% projection in Daily Wave [iii] at 1.0724 and that will be my next major target.
Within that I feel we are seeing a Wave [c] lower from 1.1167 within which Wave –iii- has a 138.2% projection at 1.0780. Look for that to cause a correction in Wave –iv- before the dip to the 1.0724 target.
Again, within Wave –c- of Wave –iii- we appear to be seeing a small Wave iv to 1.0895-16 and from there look for Wave v to 1.0780.
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