| Resistance: | 0.6468 | 0.6506 | 0.6534 | 0.6560-94 |
| Support: | 0.6428 | 0.6350-70 | 0.6338 | 0.6265 |
.
Bias: Mixed - waiting for breaks
Daily Bullish
Yesterday saw most of the day generating steady gains that stalled at 0.6594. From there we have seen a fairly deep pullback and the depth concerns. However, while this morning's low at 0.6428 remains intact I still feel that the argument for a direct rally is possible. We shall need a quick break above 0.6468 followed by 0.6506 to provide the lift needed to extend the upside through 0.6534 and to the 0.6560-94 highs. Take care as this could cause a small correction. Above maintains gains for 0.6627 and 0.6662-92...
Medium Term Bullish
18th November: We really do need the 0.6357-70 lows to remain intact to retain a bullish stance. A break back above 0.6594 will assist for a retest of the 0.6692 high and probable follow-through for 0.6736 and 0.6789 at least. More distant targets lie at 0.6846 and 0.6981.
Daily Bearish
While gains were seen yesterday these weren't too convincing and thus we should still keep an eye on key supports which appear to be at 0.6428 and then the 0.6357-70 low. A break of the higher 0.6428 low seen this monring will undermine the bullish structure and risk losses extending back to the 0.6350-70 low. If these give way then the implication appears to be for stronger losses to 0.6244-65 and quite possibly all the way to the next major support at 0.6141-51.
Medium Term Bearish
18th November: The 0.6350-70 low mark the break area for stronger losses that if breach is seen should generate stronger losses to 0.6141-51 at least. This should cause a pullback at least. Next support is at 0.6048.
Elliott Wave Comments
14th November:
The 0.6339 level is an approximate 66.7% retracement of the rally from 0.6006 to 0.7014. This morning’s recovery does seem to have broken above the last swing high and thus the risk is that we have seen a base in Wave –b-.
We should still be a little cautious at a potential 61.8% retracement in a Wave x at 0.6735 but once this is taken out it should imply an eventual move back to the area around the 0.7014 high in Wave i of Wave –c-.
Only back below the 61.8%-66.7% retracement of this morning’s rally at 0.6457-74 would risk a further test at 0.6339.
17th November:
While the pullback has been deep it hasn’t yet broken below the 0.6338 low and until then the upside is still possible. A move back above 0.6692 would confirm additional gains to the 176.4% projection of the 0.6338-0.6692 rally which rests at 0.6846.
Below 0.6338 extends losses to the 76.4% retracement at 0.6244 and more likely the 176.4% projection in an alternate Wave –iii- at 0.6141-51.
