| Resistance: | 0.6750 | 0.6795 | 0.6820 | 0.6858-88 |
| Support: | 0.6690 | 0.6640 | 0.6600 | 0.6525-44 |
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Bias: I am still looking for losses down to 0.6525-44 with 0.6690 providing a temporary pullback
Daily Bullish
While we did see a deep pullback this didn't manage to break above 0.7013-24 and thus the downside is still intact. There is minor support at 0.6690 that should cause a correction. However, take care as this could be brief with resistance seen at 0.6750-70 and maximum 0.6820. Thus any stronger bullish stance is going to need a break back above 0.6820 and only then woudl ai look for a move to the 0.6858-88 pivot resistance which should hold on first test.
Medium Term Bullish
6th November: I feel we should be presented with what I think will be a good buying area around the 0.6525-44 support. Only an earlier break above 0.6858-88 would provoke an earlier recovery back to 0.7013 and above.
Daily Bearish
Losses have progressed and should sooon hit the 0.6690 intermediate support. This should cause a correction but it is unclear quite how deep this will be. At a minimum the 0.6750-70 area in implied and at a maximum 0.6820. If it gets to the higher then we may see a small triangle develop. A cap around 0.6750-70 would generate losses below 0.6690 and down towards the favored 0.6525-44 target which I look to hold. Thus only breach pf 0.6510 would generate stronger losses for 0.6422 and 0.6389.
Medium Term Bearish
5th November: The cap at 0.7013 is warning of a recycling of the correction lower and any break below 0.6810 should accelerate the downside for an eventual retest of the 0.6544 low. However, this should hold (although allow for small breach to 0.6525).
Elliott Wave Comments
3rd November:
Losses don't seem to be following a more impulsive form and thus we are more likely to be seeing a correction lower. Now, this may mean that Friday's 0.6544 low may have been just the first leg of a complex correction which in all likelihood would be a flat or expended flat. Thus watch the 0.6891 high for resistance in a flat correction or the 38.2% expansion at 0.7024. Both of these would force a retest of the 0.6844 low and possibly the 0.6525 pivot support.
Around this we can generate alternatives - a break above 0.7024 suggesting a more bullish move that would still see resistance at the 0.7064 area being around the prior Wave b and being a potential 58.6% retracement in Wave -iv-. Beyond sees stronger gains.
Only below the 0.6525 pivot support generates a stronger bearish stance.
