Price:2.0334
| Resistance: | 2.0360 | 2.0380 | 2.0404 | 2.0441 |
| Support: | 2.0303 | 2.0261 | 2.0221 | 2.0174 |
| Bias: | While 2.0376-80 caps I look for losses to 2.0261 before a pullback - eventual target at 2.0221-24 |
| Daily Bullish: | The 2.0442 resistance held perfectly and from there we have seen losses as anticipated. These look as if there is further to go and thus long positions should require confirmation. The next support is at 2.0261 and I feel this should provide a pullback which has potential to the 2.0320-30 area but that should be it. Thus only a clean break back above the 2.0360 pivot area and then 2.0376-80 resistance would provide a stronger argument for gains. If seen then look for these to move above 2.0441 and to 2.0493. |
| MT Bullish: | Yesterday's deep pullback doesn't alter the fact that we should see price higher but this now maybe contained by 2.0593. Watch support at 2.0221-51 as a base for the next rally. (4th October) |
| Daily Bearish: | The downside has progressed nicely and I see this declining to the 2.0261 area but this should cause a pullback. If from this low we see a move to 2.0225-35 then I feel this will be good for a further decline. Once below 2.0260 we should see the last leg to the 2.0221-24 support which I look to hold. At the very most the 2.0174 level is the maximum I'd accept in this decline. |
| MT Bearish: | It seems like a deeper correction has come sooner rather than later but there remains good support at 2.0221 (max 2.0174) and only below here would trigger stronger losses back to 1.9877 & below. (4th October) |
ELLIOTT WAVE COMMENTS
5th October
The first move lower has ended at 2.0276 with the correction back to 2.0427 being an approximate 66.7% retracement. Also note the 76.4% retracement at 2.0442.
9th October
The 2.0441 high appears to be Wave -b- and a wave equality decline in Wave -c- would imply a target at 2.0224 which is just 3 points above the 50% retracement in Wave -iv-. Thus from this area look for Wave -v- to begin which then has a target at 2.0593 which is a wave equality target in Wave (c).
By: Ian Copsey
Global Forex Trading
Global Forex Trading
