The perspective from the daily analysis remains the same in that we continue to look for an end to the first leg of the major correction in the 90.50 to 91.50 area. So the drop to trend line support at 91.15 could be it. However the Elliott Wave count scenario suggests there is still one new low to come. We view the drop to 92.30 as the A wave, the reaction to 93.40 as B and we believe the C leg is taking the form of a declining wedge which argues the 91.15 low as only C, the subsequent reaction the D wave and we are now in the final E leg lower towards the 90.50-60 target in a move that would complete the larger A wave. Thereafter a reaction back to 92.30 is likely within an intermediate B wave that could see a return to 93.40 in time. A break above the wedge resistance at 91.80 opens the chance of an early reversal but only above the 92.30 pivot confirms.
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By Ian Park, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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