Price: 1.5695
| Resistance: | 1.5700 | 1.5732 | 1.5762 | 1.5805 |
| Support: | 1.5663 | 1.5648 | 1.5613 | 1.5569 |
| Bias: | While 1.5663 supports the upside remains for new highs else the downside should accelerate |
| Daily Bullish: | The downside clearly overcame the 1.5740 support and has reached 1.5665 this morning. Indeed, the 1.5663 level is implied in the decline as a potential end to a corrective pattern. Thus while this low holds a move back above 1.5700 initially and then 1.5730-35 will encourage a move back to 1.5760 and probably the 1.5790-1.5817 area where a pullback should ensure. Next resistance is at 1.5845. |
| MT Bullish: | 22nd May: Yesterday’s gains make it look like the retracement higher can be very deep and while 1.5845 may hold temporarily there does seem room for a stronger test above 1.5901 again. |
| Daily Bearish: | Losses made it down below 1.5696-15 but have stalled above the 1.5626-30 support. Indeed, within the decline from 1.5817 the 1.5663 level is implied as completion of what should be a correction. Thus, before getting further bearish wait for loss of 1.5660 which, if seen, should accelerate losses through 1.5648 and to 1.5613 where a small pullback is possible. Below is support at 1.5569-88 and if this is reached again it should cause a correction but then imply an eventual intermediate target at 1.5485-00. |
| MT Bearish: | 23rd May: Having seen gains quite strong we can raise the reversal area to around 1.5630-50 – though 1.5560-86 does have potential to support also. Thus below 1.5586 will raise the risk of losses back to 1.5283. |
ELLIOTT WAVE COMMENTS
28th May
This morning’s move down to 1.5663 appears to complete a minor Wave v from the 1.5817 high in Wave Fc of a flat correction from 1.5812. If so then this should be the end of Wave x and thus we should now see a final ABC move higher to complete a triple three. The first Wave a should reach back to the 1.5817 area followed by a correction in Wave b and followed by Wave c to the 76.4% retracement in Wave (b) at 1.5845 at least. This will be approximate.
Any earlier loss of 1.5660 does therefore suggest that the immediate upside is complete and we should see losses to the last Wave b at 1.5485 at least which also represents a 61.8% retracement of the recovery from 1.5283.
Ian Copsey
See Also
- Pro Commentary
Powerful analysis for profitable trading
