All right, my first analysis post. Going through the charts this morning, most of the pairs I normally check out are all in similar consolidation patterns.
Given the amount of volatility and the influence risk sentiment has had in dictating price action over the past week, I have chosen one of the more risk sensitive pairs for today's post.
Taking a closer look at the 4 hour chart, there is a completed 5 wave triangle pattern with a strong support level @ 1.0160/65.
Zooming out I have suggested the following Elliott wave count which points to a higher likelihood of a bullish breakout from the consolidation area.
This is also inline with the current strong bullish uptrend. Looking for another wave 5 up to complete the wave A correction before beginning a B wave leg down.
Will watch for:
- Bullish price action setup at the 1.0160/65 support area or
- If a breakout occurs, a price action setup based on a retest of former resistance.
I think the biggest event risk item just about everyone (who doesn't live under a rock) is watching for is the EU summit over the weekend. Whether decisive action can be taken to stem the systemic risks in the Euro region remains to be seen which will drive price action in the following week.
No comments:
Post a Comment