General overview for 08/07/2015 10:20 CET
The Elliott wave progression in the daily time frames is now divided into two counts: main and alternative one. Both of them are showing the possibility of an upside reversal in wave C black, but the difference is in the placement of the bottom for the wave A blue and the wave B development.
According to the main count, we see the last downward five wave progression in wave C black and completed wave A blue. Then, from the low at the level of 126.05, there is another five wave progression to the updated, labeled as the wave A black. Currently, the downside corrective cycle in wave B has hit the level of 133.54 (50%Fibo), and it can either reverse now or there is a chance it will go little lower to the level of 131.78 (61%Fibo) and reverse. The target for this scenario is below the level of 149.80, but way above the wave A black last swing high.
In the alternative count, due to the different placement of the wave A blue, wave A black is in five waves as well but the current corrective cycle might not have been completed yet and it can go as low as the level of 126.05. When this level is hit, a bounce or reversal is expected.
126.05 – Wave A Blue Low
131.67 – Wave A Black High
133.54 – 50%Fibo
131.78 – 61%Fibo
Swingtraders should consider opening buy orders from the current price levels with SL just below the level of 133.02 and TP at the level of 141.50 min. Please notice that any breakout below the level of 133.03 will be considered bearish and buying on the dips is invalidated.
The material has been provided by InstaForex Company – www.instaforex.com