Thursday, June 19, 2014

Elliott wave analysis of EUR/USD - Correction from 1.3503 continues

EUR/USD the correction from 1.3503 continues

With the clear break above 1.3587, we finally got the clue needed to tell us, whether the correction from 1.3503 ended at 1.3587 or it only was part of wave c higher. We now know that it was part of wave c higher to 1.3690, where wave c will be equal in length to wave a. At 1.3690 wave (ii) will also have corrected 38.2% of wave (i). A correction of only 38.2% in wave two is a rather small correction and indicates underlying strength in this cross.

That said, we have to remember, that we don't yet have any knowledge, where wave (ii) will end. All we can do is look at the facts and try to access the possibilities and at this point they favour, that wave (ii) terminates near 1.3690.

Short term I'm looking for red wave iii to end near 1.3644 and call for a small flat red wave iv before the next minor rally higher towards 1.3683 to end red wave v and red wave (iii) and then another flat correction 1.3618 before the final rally higher towards 1.3690 to end red wave (v).

Once wave (ii) is over near 1.3690 I expect a new powerful decline towards 1.3200 and possibly even lower.

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6 comments:

  1. Hi EWS, do you still support usd/chf bullish scenario from the earlier posts with 0.9831 as one of the key points?

    ReplyDelete
    Replies
    1. Hi Marjan,

      Yes, the bullish count for USD/CHF is still valid. I think we are in a wave two correction, but the next impulsive rally higher in wave three.

      kind regards
      EWS

      Delete
    2. thought so, after the correction USD should strike back.
      thnx EWS

      Delete
  2. i think US congress will give approve to attack the ISIS in IRAQ by next week

    ReplyDelete
  3. Is a diagonal triangle may be designated as a, b, c, d, e?

    ReplyDelete
    Replies
    1. Hi,

      Yes it could also be a ending diagonal.

      Kind regards
      EWS

      Delete