General overview for 24/11/2016:
The Elliott Wave count for this pair has been updated and changed due to the alternative count invalidation. The current count is the old main scenario that was abandoned in favor of alternative labeling, which eventually did not work correctly. This is why we will now follow the new main EW count, starting from the weekly time frame. On this time frame, the big corrective cycle in wave 2 (navy) labeled as ABC was completed at the level of 109.55 and now the market is trying to unfold the big wave 3 (navy). Moreover, we can see the price has hit the golden trend line and it might be a good level to start the internal corrective cycle before the eventual trend line violation (please notice the market is still trading below 50, 100 and 200 weekly moving average as well). On the daily chart I have marked first two impulsive waves purple and both of them are now completed. This indicated that the market is now developing wave 3 (purple) to the upside. Details of this wave progression can be seen on the H4 and H1 charts. The wave 3 (purple) internal waves are unfolding in impulsive fashion and the current order is as follows: (1)-(2) blue, (i)-(ii) green, (i)-(ii) black, -i- - -ii- black. The projected top for the wave (iii) is currently at 161% Fibonacci Extension at the level of 119.90. When the wave (iii) is completed, then an internal correction of a lesser degree is anticipated.
Support/Resistance:
119.90 - 161% Fibonacci Extension
119.64 - Intraday Resistance
118.97 - WR2
118.47 - WR1
116.99 - Weekly Pivot
116.49 - WS1
116.24 - Local Low
Trading recommendations:
Day traders should consider opening only buy orders on the dips with tight SL and TP open for now.
