Wave ii of 5 most likely ended at 124.05 and this support should not be broken at any time now. I'm looking for a break above resistance at 125.78 as the confirmation, that wave ii is indeed over and wave iii of 5 is developing for a rally higher to at least 130.72 and more likely we will see wave iii of 5 move even higher towards 134.58. At 134.58 wave iii will be 1.618 times longer than wave i. I'm also looking for a very powerful rally in wave iii, therefore resistance should be broken without mush of a fight. Only a surprise break below 124.05 will delay the expected upside pressure for a move closer to 123.80 before the next upside rally can be expected.
The price-action since the impulsive rally from 1.5670 to 1.5871 is clearly corrective in character, which indicates, that we soon will see a break above important resistance at 1.5878. A break above resistance at 1.5878 will signal, that wave e of the expanding triangle fell short of its ideal target and that a new powerful rally has begun. However, as long as resistance at 1.5878 protects the upside we should expect a minor decline towards 1.5807, but will likely not see anything lower than 1.5765 before the next test of important resistance at 1.5878 sets in and a break above 1.5878 will call for a powerful rally higher towards 1.6134 and 1.6253.
Hi EWS bit off subject GBP looks like i ii and iii in hourly chart got in at 4944 and looking for first taget of 5268 do you think this wave we are in is a extended C im bit lost with this one as it go"s back to 2009 your veiw would be great
ReplyDeleteBest Regards JT
Hi JT
ReplyDeleteI agree with you, that we have clearly seen a impulsive rally of the low at 1.4831. We are in wave iii, which ideally should test 1.5150 followed by wave iv down to 1.5068 and the wave v higher to end wave A of a zig-zag correction from 1.4831.
I agree with you wave v target near 1.5268, but be awave of the risk, that it will only be 38.2% of wave i trough wave iii, which will make wave v terminate at 1.5190.
I'm not quite sure wave you mean by this being an possible extanded C wave, but if you count the decline from 2.1161 down to 1.3514 as wave A and the triangle as wave B then yes we are in wave C down. That means we should at least see 1.3477 tested as wave C down udfoldes
Kind regards
EWS
Thanks for your view most appreciated and in advance have a great weekend
ReplyDeleteBest Regards jt
Its strong important eurjpy break this resistence zone.....i think if it fail it build the rigth shoulder of a H&S chart pattern!
ReplyDeleteYou are always welcome JT
ReplyDeleteA great wekend to you too.
Kind regards
EWS