Minor support at 131.37 has been broken too and is yet an other sign of weakness. We still need a break below support at 130.76 to confirm, that wave b has finished and wave c taken over for a impulsive decline towards at least 124.96 and possibly even lower. Short term we will now find resistance at 131.44 and more importantly at 132.05 and only a break above the later will ease the downside pressure and call for a new rally higher towards 132.74 and maybe even 133.81, but that option seems as a low odds possibility. Therefore we should be prepared for a break below support at 130.76 rather than a move higher.
As we broke below important support at 1.6475 and even more important support at 1.6427 I have been forced to change my count. My preferred count is now, that wave ii still is in motion from the 1.6798 high. As we already is way past the 61.8% corrective target we will be looking for support at the Harmonic level at 70.7% (Gann target), which comes in at 1.6393 and again at the 78.6% Fibonacci level at 1.6349. However, it should be remembered, that second waves are allowed to correct 100% of the first wave, but it can never ever break below the start of the first wave, which in this case will be below 1.6225. However I doubt that this wave ii correction will be that deep. That said, I will be looking for a possible bottom at 1.6393 for a break above 1.6487, which will be the first indication, that wave ii could be over. However, we will need a break above 1.6686 to confirm the bottom for a continuation higher towards 1.6798 and higher in wave iii.
Hey EWS hope you are doing well.
ReplyDeleteUsdChf looking like could be coming to the end of its correction between 70.7 and 78.6% fibo ther has to be a power move up soon whats your veiw.
Best Regards jt
Hi JT,
ReplyDeleteThank you, all is well by me. Hope you are well too.
I agree with your view. The correction from 0.9751 should be close to a bottom and a new rally under way.
As you can see from my EUR/USD post Wednesday I call the top of the ending diagonal a little too early, but it should just be a matter of time before EUR/USD collapses and USD/CHF rallies. A breal above 0.9394 will confirm the bottom.
Kind regards
EWS
Like you say should be two good trades coming Eur down and Chf up will keep close eye for conformation no both.
ReplyDeleteGreat posts this week been a wild ride EurNzd the fight continuse in advance have a great weekend
Best Regards Jt
Thanks for the update on Natural gas.
ReplyDeleteeur/nzd chart is telling a bottom is around on its way and the rally is on the cards as wave 2 unfolds in tripple correction and NOw wave iii of 3 can start anytime soon
really I was looking for the same in usd/chf but current rally is unfolding in ending diagonal and lows could be on its way as it should not break below 0.9280 then I think test of 0.9190 is possible that is highly unlikely move but we currently in wave 2 and this could be the last ride
thanks for the updates
Happy weekend
my sincerest regards