| Resistance: | 1.5949 | 1.5998 | 1.6050 | 1.6106 |
| Support: | 1.5841 | 1.5810 | 1.5768 | 1.5700-20 |
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Bias: I suspect the 1.5841 low (max 1.5810) should hold for gains back above 1.6106 to 1.6154-98
Daily Bullish
Losses were seen as expected but stalled at 1.5599 causing a recovery. While the low seen wasn't where I expected it I still feel that we should see the upside develop today. It does seem more logical for this morning's low at 1.5841 should hold - however, allow for maximum 1.5810. From here a break above 1.5998 should provide the boost for additional gains. These should soon see yesterday's high at 1.6106 and while this may cause a temporary correction the targets should be at 1.6154 and 1.6198-15 which should cap.
Medium Term Bullish
5th November: The reversal from 1.5599 should now see choppy gains back to the 1.6473- and 1.6542 areas in a sideways consolidation. .
Daily Bearish
The reversal from 1.5599 has seen a modest recovery and that is my bias. Only an earlier break below 1.5800-10 would concern and if seen would turn the tables for additional losses. Next support is at 1.5768 and slightly stronger at the 1.5700-20 pivot support. Take care as this could cause a pullback. Direct breach would extend losses to yesterday's 1.5599 low and probably breach for 1.5461, 1.5399 and 1.5319.
Medium Term Bearish
5th November: We very nearly reached the 1.5684 target yesterday and there is still risk of seeing this area (max 1.5653) but a correction is due. While this remains below 1.5955-95 there is still downward risk for the 76.4% retracement at 1.5591 and possibly the 85.6% at 1.5461... Only below suggests a fuller test of the 1.5257 low.
Elliott Wave Comments
5th November:
Yesterday's pullback to 1.5599 being a 76.4% retracement seems to imply that we should get a recovery in a triangle at the very least. This would imply the next leg should rally towards the 66.7% projection at 1.6542. Oon the way we'll need to watch for the possibility of a second Wave x which sees a 61.8% retracement at 1.6154 and a 66.7% retracement at 1.6198 which is also marked by a pivot resistance.
Thus only a break above 1.6198-20 would imply a rally back up to a prior Wave b at 1.6398 and beyond there to the triangle targets mentioned above.
Any earlier break below the last Wave b in the rally at 1.5810 would suggest a deeper correction lower in a third ABC structure. First stop should be close to the 1.5599 low. There is an 85.6% retracement at 1.5461.
