Guest Commentary: MarketVisionTV - Hourly EURUSD - Mapping the Diagonal C Wave
Price action over the past 12-16 hours is still consistent with the view of a diagonal C wave from the interim 1.3290 B wave high. As the first leg of the larger downside correction from the 1.3485 peak to the initial 1.3095 A wave low was 3.9 cents this formation projects an eventual decline to 1.2900. Analyzing the internal structure of the wedge the minor A wave finished with the dip to 1.3075. The B wave retraced 50 percent to 1.3190. As such we suspect we have ended the center part of this pattern or C wave with the erratic decline to hold 1.3000 or slightly above the former 1.2970 corrective low. Thus as this area holds we would expect to see a messy upside correction of about 50 percent to slightly overlap the A wave at 1.3095. This should offer a final downside spike to the 1.29 target before the momentum loss is resolved with upside reversal. Only below 1.2800 at this point would concern and threaten downside acceleration to attack the medium term 1.2625 base.
By Don Haines, www.MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.