We have concentrated recently on the fact that “the rally from 1.9361 is wave C within the A-B-C advance from 1.9337. Wave C should divide into 5 waves and so far there are only 3 waves up. As such, we expect additional gains. The next likely resistance point is the 61.8% at 2.0463.”
If the count above is correct, then wave 1 of C is 585 pips (truncated), and wave 3 is 501 pips. Wave 3 can not be the shortest wave, therefore wave 5 must be no longer than 501 pips. A 500 pip rally from the wave 4 low (1.9995) places the end of wave 5 at 2.0495; very close to the 61.8% of 2.1160-1.9337 at 2.0463. Today’s high is at 2.0389. We are on the lookout for a short opportunity. Be sure to check FXCMTR for ideas.
