Guest Commentary: MarketVisionTV - Potential Downside Correction is Finally Over
Following the aggressive rally to 1.0845 we have entered a messy downside correction that thus far has lasted 10 days. The first leg of this dip finished with the 3 wave decline to 1.0640 before developing a complex interim upside B wave with an irregular pattern to marginal new lows and culminating with the gap higher to 1.0815. This set an ideal C equals A decline of 210 points to the downside target of 1.0610. Although somewhat complex we suspect this 5 wave C may well have ended with the dip to 1.0605. Thus look for an upside break of the channel structure and more importantly the 1.0700 pivot point to confirm the end of the move and the resumption of the uptrend to the next 1.0920 trend target. Failure to clear this down channel and a break to new lows should find support at the ideal 38.2 percent of the third wave retracement target of 1.0570 before higher.
By Don Haines at www.MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.