The dynamic of the rally from 119.07 clearly tells me, that we are indeed in wave iii of 5. The first possible target for this wave iii, after the break above 127.70, is at 128.76, but I find it more likely to see a continuation higher towards 130.93, where wave iii will be 2.618 times longer than wave i. Short term I expect that support at 126.67 will protect the downside for the next rally higher towards 130.93.
A short term high have been established just below my first target at 1.5535. I'm now looking for at 1.5406 to protect the downside for the next rally higher towards resistance at 1.5630 and higher at 1.5770. However, if support at 1.5406 breaks the risk for a deeper correction towards the 1.5333 - 1.5350 area is to be expected before the next rally higher. For the longer term I expect this rally to exceed the top at 1.6359 for a continuation towards at least 1.6697, but this rally will likely be much higher.
where is wave 1 & 2? dont you think this might be an extended wave 1?
ReplyDeleteHi Zink,
ReplyDeleteWave i of 5 ran from the low of 118.73 to 125.10 and wave ii of 5 was a very deep correction from 125.10 down to 119.11 and wave iii 5 is now under way higher. Targets see above.
I don't think the rally we have just seen from 119.11 is an extended wave 1. The wave charcteristics better fit, that it's a wave iii of 5.
Kind regards
EWS
Hi EWS:
DeleteIn EURJPY, 2,618 times of wave i of 5 from wave ii, if I am not wrong will be 137,939. The 161,8 Fibonacci extension will be 130,745 approximately. Or maybe I am wrong?
Hi Manuel,
ReplyDeleteYou are absolutly right. Fat fingers early in the morning...
As you say it should have been 1.618 time wave i at 130,93.
Thank you
EWS