Elliott waves analysis – Waiting for a long position around 111.040

Instead of rallying further to the upper side, towards 118.23. The US Dollar corrected itself significantly to the lower side but is still above the daily support level 111.284. This is a key level and unless the price clearly break below it, any rebound from this level will mark an end to the corrective three wave cycle and should be an onset to a impulsive wave to the upper side but should not go beyond the weekly resistance level 118.00. This view can only be invalidated in case the price breaks below 111.264, and even then we’ll be waiting for another break below 111.040 to confirm further bearish price rally.

Wa’re expecting a rebound from 111.264 to pick a long position towads 118.00.