Price: 0.9525
| Resistance: | 0.9560 | 0.9580 | 0.9611 | 0.9636 |
| Support: | 0.9510 | 0.9485 | 0.9458 | 0.9422 |
| Bias: | Until 0.9510 breaks a bullish argument is still possible – above 0.9570-80 would confirm the rally |
| Daily Bullish: | The 0.9510 support held perfectly and this is encouraging although today has seen losses to very nearly retest this support. While it holds it does provide a more bullish interpretation. To confirm this we’ll need a move back above 0.9535 followed by 0.9560-80. Once this occurs look for follow-through to 0.9636 which could generate a correction initially. Next resistance is then at 0.9666 and anywhere above here (max 0.9720) should provide a major high. |
| MT Bullish: | 29th May: Yesterday’s much stronger whippy price action is beginning to make me feel that the upside is limited to 0.9666 and possibly that we have seen a high at 0.9652. At most the 0.9720 level should cap. |
| Daily Bearish: | The 0.9510 support remains a key area and only break here would undermine the upside. Breach would trigger follow-through to 0.9485 and probably 0.9458. Take care here as this could cause a pullback. Only below would maintain the downwards momentum for 0.9390 and possibly 0.9348. |
| MT Bearish: | 28th May: While there is a risk of seeing 0.9510 I suspect we are going to see 0.9666 and probably 0.9720 first from where a larger decline should begin. Thus only an earlier move below 0.9500 will confirm larger losses. |
ELLIOTT WAVE COMMENTS
2nd June
We have seen the 50% retracement in Wave iv hold at 0.9510 on Friday and this needs to hold to retain the 0.9666 and 0.9720 targets.
This morning has seen a second test lower and we therefore need a break back above the 0.9560-80 pivot region. If this occurs then look for 0.9636 being the prior Wave b and which could produce a small reaction. Above means we should watch the 66.7% Wave –v- target at 0.9666 and the 76.4% projection at 0.9720.
Any earlier drop below 0.9510 would raise the risk of seeing an extension to 0.9458-85 where we will need to be prepared for a correction. Direct breach would imply stronger losses to the 261.8% projection in minor Wave c at 0.9348.
Ian Copsey
See Also
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