Following on yesterday’s call for a bear-trap below 1.3207, a close today above recent pivot highs at 1.3220/30 would negate the breakdown that has been taking place over the last week of trading. The large broadening pattern is interpreted as an a-b-c expanded correction in terms of Elliott and there is a 1.618 relationship between waves-a & c.
S/t, use the previous wave-4 highs at 1.3227/36 to signal that a new uptrend is underway. Stronger resistance surfaces at the breakdown level of 1.3298. Downside support is now the lows of the last 2 sessions near 1.3160. Looking out, a rally through the old 1.3298 pivot low makes a strong case for a move to new highs above 1.35 Levels: Support – 1.3160, 1.3139, 1.2994 Resistance – 1.3227, 1.3236, 1.3298
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