Commentary: Yesterday we wrote that “we view the entire decline from 2.1160 as wave 1 or A in a 5 or 3 wave bear cycle. Therefore the rally from 1.9337 is viewed as wave A of the 3 wave countertrend rally. Look for price to come into the 1.9563/1.9702 zone before another rally completes the correction sequence from 1.9337.” A top for wave A might be in place at 1.9949. Wave 5 of A appears to take the form of a diagonal (overlapping waves) and diagonals are usually fully retraced. In this case, the origin of the diagonal is close to the 38.2% of 1.9337-1.9949 at 1.9715. The next move is towards this level -- we will look to buy this dip.
Strategy: Flat
Al Bawaba
