Being contained by 1.3861 resistance, EURUSD pulled back from 1.3837, suggesting that lengthier consolidation of uptrend from 1.3428 is underway. Deeper decline towards the lower border of the price channel on 4-hour chart could be seen. As long as the channel support holds, we’d expect uptrend to resume, and another rise towards 1.4000 is still possible. However, a clear break below the channel support will indicate that sideways consolidation in a range between 1.3428 and 1.3861 is being formed, then next target would be at 1.3450-1.3500 area.
Archive for February, 2011
By Elliott Wave International
Have you ever been at the ocean body surfing, just waiting for that perfect wave? When you begin to truly feel it, your adrenaline starts pumping.
USDCHF stays below a falling trend line on 4-hour chart and remains in downtrend from 0.9774. As long as the trend line resistance holds, downtrend could be expected to continue and deeper decline towards 0.9100-0.9150 area could be seen.
USDCHF continued its downward movement from 0.9774 and broke below 0.9300 (Dec 31, 2010 low) support, suggesting that the long term downtrend from 1.1730 (Jun 1, 2010 high) has resumed. Resistance is at the falling trend line on 4-hour chart, now at 0.9390, as long as the trend line resistance holds, downtrend could be expected to continue. Deeper decline could be seen in a couple of days, next target would be at 0.9200 area.
EURUSD is facing 1.3743 resistance again, a break above this level will indicate that the fall from 1.3861 had completed at 1.3428 already, and the bounce from 1.3428 could be treated as resumption of uptrend from 1.2874 (Jan 10 low), then the following upward move could bring price to 1.4000 zone. However, as long as 1.3743 resistance holds, the rise from 1.3428 is treated as correction of downtrend from 1.3861, and another fall towards 1.3300 is still possible.
Being contained by 1.6277 resistance, GBPUSD pulled back from 1.6261, suggesting that a cycle top had been formed on 4-hour chart. Deeper decline could be expected in a couple of days and target would be at 1.5900 area. Initial resistance is now at 1.6261, only break above this level could trigger another rise towards 1.6500 zone.
EURUSD is testing 1.3743 key resistance, a break above this level will indicate that the fall from 1.3861 has completed at 1.3428 already, then further rise towards 1.3861 previous high could be seen. However, as long as 1.3743 resistance holds, the bounce from 1.3428 could possibly be correction of downtrend from 1.3861, and another fall to 1.3300 area is still possible. Support is at the rising trend line on 4-hour chart, now at 1.3568, a clear break below the trend line support could signal resumption of downtrend.
USDJPY stays above 83.09 support and remains in uptrend from 81.13, the fall from 83.96 is treated as consolidation of uptrend. As long as 83.09 support holds, uptrend could be expected to resume and one more rise towards 84.49 resistance is still possible. However, a breakdown below 83.09 will indicate that a cycle top had been formed at 83.96 level on 4-hour chart, and the rise from 81.13 had completed, then the following downward move could bring price back to 82.00 area.
AUDUSD remains in downtrend from 1.0199, the price action in the trading range between 0.9943 and 1.0073 is treated as consolidation of downtrend. As long as 1.0073 resistance holds, downtrend could be expected to resume and next target would be at 0.9850-0.9900 area. However, a break above 1.0073 resistance will indicate that a cycle bottom had been formed at 0.9943 level on 4-hour chart, and the fall from 1.0199 has completed, then further rise to 1.0150 area could be seen.
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