The rally from 121.56 exhausted already at 124.13 followed by a deep correction to 121.83. If wave iii of 5 has begun we can not accept a break below 121.56 at any time. If we break below 121.56 we know that wave ii of 5 still is ongoing, but the downside should be limited. On the other hand a break above 122.75 and more importantly a break above 123.70 will indicate, that wave iii is indeed unfolding and we should expect a powerful rally higher towards 133.54 to develop.
The gap from 1.5776 down to 1.5704 has not been closed, that could be another sign of major underlying weakness here. That said, we still need a clear break below 1.5600 to confirm that weakness. Short term we are looking for resistance at 1.5673 and again at 1.5689. We would like to see one of these resistance levels protect the upside for the clear break below 1.5600 for a continuation down towards at least 1.5390 and ideally close to 1.5200. However, if we break above 1.5689 we should expect more filling of the gap towards 1.5776.
On my chart decline during the gap finished level 119.35.I think there needs to assume that wave 2 of 5 is over there.A rise from 119.35 to 124.11 to take it at the beginning of wave 3 of 5.
ReplyDeleteIn EURJPY you are talking of 123,70 as important level for expected wave iii. Is this level the top of wave b of (ii)?
ReplyDeleteHej Diversanta and Manuel
ReplyDeleteI too think that wave iii of 5 is developing, so we should expect a powerful rally the next days/weeks
Yes I regard 123.70 as the top of wave b of ii and a break here will indicate, that wave iii of 5 is developing.
Kind regards
EWS
Nasty impulses in FB. You still think 25.60 is a good level for Wave 4 still?
ReplyDeleteHi Hedgiefundman,
ReplyDeleteNo change in my view. Only a break below the top of wave 1 at 23.37 will invalidate my count and tell me that we have seen a double zig-zag combination, but I'm nowhere near regarding this as an option at this point.
Kind regards
EWS