- 61.8% of the Sept 18-22 down trend = 1.1323
(c) = (a) = 1.1317
Blue corrective channel = 1.1340
Wave y = .618 * w = 1.1308
Therefore, we are anticipating another down leg of similar proportion (or greater) than the Sept 18-22 move (350 pips). That would place an initial zone near 1.1000...a nice round number.
Sentiment is -1.45 and hasn't moved much over the past few days. It's not a real extreme figure.
If prices do bound higher out of this price zone, the next level of resistance is 1.1380-90.
In this case, it is a bearish set up. So my bias is for prices to reverse and head lower towards 1.1000. However, if strength continues higher, the next level of resistance is up near 1.1380-90.
Keep an eye on divergence in the oscillators to provide clues as to the near term strength of the momentum as well.