ORBEX EURUSD: Was This The End Of The Zig-Zag Correction?
It looks like the primary W,X,Y zig-zag wave ended the longer-term bearish cycle correction starting on February 2018.
Minor 5 of Primary Y wave ended with a diagonal triangle at 1.09275 level, which is the 1.618% FE of the 1.14-1.12-1.128 triangulation.
Since prices broke outside the top of the triangle pattern and remained trading with a bullish rather than bearish bias (i.e. remained outside the pattern), the current structure could be a corrective minute wave 2. Should this scenario be supported by a higher break above 1.11, further upside could be seen, with next short-to-medium-term stops at 1.1285 and 1.1355.
The current structure hints to an ascending triangle correction, the top-break of which would suggest a continuation to the upside.
Although a decline to lower levels than the 61.80% FR at 1.0997 could weigh on bulls, the invalidation for the bullish scenario would come true only after a weakening of the 1.09275 market low.
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
Minor 5 of Primary Y wave ended with a diagonal triangle at 1.09275 level, which is the 1.618% FE of the 1.14-1.12-1.128 triangulation.
Since prices broke outside the top of the triangle pattern and remained trading with a bullish rather than bearish bias (i.e. remained outside the pattern), the current structure could be a corrective minute wave 2. Should this scenario be supported by a higher break above 1.11, further upside could be seen, with next short-to-medium-term stops at 1.1285 and 1.1355.
The current structure hints to an ascending triangle correction, the top-break of which would suggest a continuation to the upside.
Although a decline to lower levels than the 61.80% FR at 1.0997 could weigh on bulls, the invalidation for the bullish scenario would come true only after a weakening of the 1.09275 market low.
Stavros Tousios
Head of Investment Research
Orbex
This analysis is provided as general market commentary and does not constitute investment advice.
Comment:
Deeper correction to 78.6% FR but the idea is still alive above 1.09275
Comment:
Fresh low could bring another wave down closer to 1.07
