Friday, May 26, 2017


BIAS:             While we could see a minor new corrective high, the overall outcome should be bearish

Resistance:   1.1226     1.1250          1.1268          1.1294-99

Support:        1.1193     1.1161-68     1.1135-40      1.1114

MAIN ANALYSIS:             Yesterday's recovery was very much corrective - developing in a triple three. From there we have seen a Wave a and Wave b - although there is a risk that the Wave b could deepen but shouldn't be by too much. Overall, without the benefit of a clear structure I'd tend to suggest that the second decline could reach down to the 1.1161-68 (area). This would form a Wave i and will thus require a pullback in Wave ii. Thus, this appears to be the probable outcome today. If it the development begins to accelerate then keep an eye out for breaks of support for losses to resume towards the 1.1114 & 1.1075-80 area...

COUNTER ANALYSIS:   With the correction higher yesterday - clearly a triple three rather than an impulsive structure - we should be looking more for losses.

Only back above 1.1268 would concern - and above 1.1294-99 would be disastrous….

Good trading
Ian Copsey

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