• Wheat broke support zone
• Likely to fall to support level 590.00
Wheat recently broke the combined support zone lying between the key support level 640.00 (which has been reversing the price from the end of May) and the 50% Fibonacci correction of the extended upward price move from August. The breakout of this support zone accelerated the active short-term impulse waves (iii) and C, which belong to the intermediate downward ABC correction (4) from the end of April.
Given the deterioration of the risk sentiment as seen across the commodity markets today – Wheat can be expected to fall further toward the next support level 590.00 (former low from march and the target for the completion of the active ABC correction (4)).