This correction has become almost impossible to work out. The most likely Elliott wave formation is the price-action over the last week with a new triangle developed as a new minor x-wave. This possible triangle is likely to have finished with the break below 1.6675 the odds now favors the downside, for a continuation towards the support-zone between 1.6578 – 1.6600 and a break below here will confirm a decline towards our ideal target for this X-wave at 163.88. Resistance is now found at 1.6778 and more importantly at 1.6823, which should protect the upside. A break above 1.6823 will shift the x-wave triangle into a b-wave triangle and call for a rally towards 1.6909, before lower again.
Trading recommendation:
We are neutral, but will sell EUR at 1.6720 with a close stop at 1.6785. We will place our take profit at 1.6450 if the order is filled.
The material has been provided by InstaForex Company – www.instaforex.com
Today’s support and resistance levels:
R3: 1.6823
R2: 1.6778
R1: 1.6735
Current spot: 166.85
S1: 1.6646
S2: 1.6600
S3: 1.6550
Technical overview:
This correction has become almost impossible to work out. The most likely Elliott wave formation is the price-action over the last week with a new triangle developed as a new minor x-wave. This possible triangle is likely to have finished with the break below 1.6675 the odds now favors the downside, for a continuation towards the support-zone between 1.6578 – 1.6600 and a break below here will confirm a decline towards our ideal target for this X-wave at 163.88. Resistance is now found at 1.6778 and more importantly at 1.6823, which should protect the upside. A break above 1.6823 will shift the x-wave triangle into a b-wave triangle and call for a rally towards 1.6909, before lower again.
Trading recommendation:
We are neutral, but will sell EUR at 1.6720 with a close stop at 1.6785. We will place our take profit at 1.6450 if the order is filled.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: