Wednesday, October 12, 2016

USD Targets

USD exceeded the previous July high of  97.61 yesterday. Last Thur it took out  96.50, a point previously mentioned as confirming a significant new structure to the upside. Pls see the Aug. 31 post USD Time?

click to enlarge
A discussion of the lengthy sideways consolidation, it's possible wave structure, and why it is over, can be found on the hyperlink above. I encourage taking a look at it.
The risk that a new, trending, primary wave up, is now beginning, has increased significantly.
(Please note that shorter term the RSI is looking pretty elevated. )


 Targets for a Primary 5th Wave
 25 Year USD chart
 click to enlarge
The Elliott 5th wave measuring rules is that it will very likely exceed the termination of the 3rd wave, it will have a .618 Fibonacci relationship to the preceding structure or equal the 1st wave.

5= 1 @ 112.71
5= 1 thru 3 x .618 @ 112.34
5= .618 of 3 @ 107.51

In the meantime a pullback to test the breakout at 97.61 would certainly be looked for and even a retest of 96.50 would be quite normal.
However, given the very lengthy consolidation,  pullbacks could easily be short lived.



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