This pop higher on the Fed minutes may be enough to put the finishing touches on a minor corrective wave higher. There is a confluence of wave relationships near 1.1308-1.1340.
61.8% of the Sept 18-22 down trend = 1.1323 (c) = (a) = 1.1317 Blue corrective channel trend line = 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.
I think it could be an ending diagonal athough the abc count is such good form it could be either and mean the same thing.
JWagnerFXTrader
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Nice one Chessnut - I hadn't considered a diagonal for the past month. Similar implications of a bearish resolution.
FullTimeTrader
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Nice! i like specially the 0.61 fib retracement. Price should reach the 1.27 fib projection near 1.1000. Regards.
ElPatron.Y
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Supports my bullish dollar view.
Mussaleem
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Dear Mr Wagner, How do i make this chart my own?you mention this often in your monday session.
JWagnerFXTrader
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In the upper left hand corner of the chart, you'll see a triangular figure which is symbolic for 'share'. (It is right below the thumbs up or 'like' icon.)
Click the triangular icon, and click the blue button "Make it Mine".
Let me know if you still have questions or difficulty finding it.
kironiubat
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now what is better?? Buy or Sell?
JWagnerFXTrader
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That's a valid question. Whenever I'm considering a trade, I always couple that with "what if I'm wrong?" That way, when the market moves against my opinion, I won't be surprised.
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.