My second resistance at 130.60 did the job well and turned prices back down again in wave iii and we should be looking for 127.15 as the first target, but we should see more downside after a shallow correction towards 128.51 and maybe even 128.91 before the next decline to at least 126.57 and possibly even lower to 126.11, which should make the bottom of wave iii. That said we should remember, that target for this major wave 2 is at 118.73, where wave 2 will have corrected 38.2% of wave 1.
As it is typical for a wave three it just keeps moving higher and higher, leaving everybody looking for a correction with a loss. Even though this market seems overbought we should expect even more from it. As I expected is green wave v extending and we should look for a continuation higher towards 1.6739 as the top of green wave v and blue wave iii, but after only a shallow correction the next move higher will take place. It might be tempting to try and sell near 1.6739, but I can not recommend it, as we should not expect much of the next correction and therefore the risk of taking a loss is high and worse the risk of seeing the train leaving without you on board is equally high. Short term I'm looking for support at 1.6591 to protect the downside for the next swing higher towards 1.6739. Only a break below 1.6539 will indicate that we have seen the top of blue wave iii and blue wave iv is developing.
EWS,
ReplyDeleteYou seem to have the Market Makers on speed dial. Could give some pointers on how you obtain your s/r levels? They are very accurate.
Hi Jeff,
ReplyDeleteHa ha! Sorry, but I have none of the Market Makers on speed dial...
Actually I'm not even close to the Market place other what I can read from the charts.
I think you mean the short term support and resistance levels right?
It is pretty old-school technical suff, but a bit hard to explain in words without a chart to look at, so I will update a chart or two during late Sunday, where I will show you how I obtain them.
Kind regards
EWS
what about eurusd ....it sems more up is coming!!!!your targets in eurusd are still valid?
ReplyDeleteHi Zink,
ReplyDeleteIs it the targets we spoke about yesterday or the long term target you are asking for?
The short term target from yesterday at 1.3342 is still valid. Ideally this target will protect the upside, but as we are in wave two in the larger count we must accept the possibility of even higher corrective targets.
If we break above 1.3342 the next target will be 1.3428.
Kind regards
EWS
1.22 or lower!
ReplyDeleteHI T nice to see the eur discussion area But I am confused Looking for an entry on euro But I think you are right as long as support 1.3200 and 1.3174 is intact on daily we can see an acceleration towards 1.3428 But wave 2 target is still 1.3342 and can acceleration be seen as c wave of a regular flat can accelearte as we seen in prior correction for 1.2042 low in zigzag which was a powerful wave C
ReplyDeleteMy kinedst regards to you analysis on eur/yen
take care
Hi Zink,
ReplyDeleteThe 1.2200 or lower target are still valid. Again I would prefer resistance at 1.3342 protected the upside for a new decline below 1.3050 confirming, that wave 3 lower is developing.
However as always the risk is, that resistance at 1.3342 is broken and the rally keeps moving higher, but only a break above 1.3711 will invalidate the bearish scenario and call for something entirely different.
Kind regards
EWS
Hi Aman,
ReplyDeleteI think that the answer above also answers your question.
Yes the powerful rally from 1.2945 is wave c of a zig-zag correction.
Kind regards
EWS
Hi EWS!
ReplyDeleteCould you tell us something about Nat Gas?
Thanks,
CJ
Hi CJ,
ReplyDeleteWill take a look at Nat Gas during the weekend.
Kind regards
EWS
Great ewp this week as always have a great weekend
ReplyDeleteBest Regards jt