MID-WEEK REPORT 7th OCTOBER 2019

EURUSD has now created a bullish impulse wave higher off the low at wave (b). Wave ‘i’ and ‘ii’ of (c) created a higher low at 1.0904, and today’s trade brought another rally in what should be wave ‘iii’ of (c). Wave ‘iii’ must now hold above 1.0904 and continue higher for the rest of the week. The target remains at 1.1109 for the main wave count. The alternate count is still possible at the moment,
but I think even that correction higher should keep going about 1.1000. Tomorrow;
watch for wave ‘iii’ of (c) to break 1.1027 in a five wave pattern. 1.0904 must hold.

Cable also created a higher low in wave ‘b’ this morning. The market fell sharply but held above 1.2202 at the low. It is hard to know if wave ‘b’ is complete at that low as shown, or if we will see a larger three wave pattern unfold as per the alternate wave ‘b’. The price should hold above 1.2202 in both cases anyway. Wave ‘c’ of (ii) should continue higher again once wave ‘b’ is done.

Tomorrow; Watch for wave (ii) to remain in force for the next few sessions. the target for wave ‘c’ of (ii) lies at about 1.2411.

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