In recent days, I have mentioned that “it is possible that the decline from 8864 is a completed 5 wave decline and that a 2nd wave is headed back towards 8570. However, the pattern does not possess the right ‘look’…” The extent of the advance from 8312 suggests that the mentioned interpretation was indeed the correct one. There is the potential for additional strength towards 8550, then 8590-8650 next week. The latter zone intersects the corrective channel on Tuesday.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Monday evenings), technical analysis of currency crosses on Wednesday and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of Sentiment in the Forex Market. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to jsaettele@dailyfx.com.
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