Elliott Wave Predictions

Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.

Beware of being overly bearish the euro right here. The break lower since February 27 could be a false breakout (known in Elliott Wave as wave B of an expanded or running flat). So far, it consists of 3 waves down, and has bounced a bit from where wave b pink would be a very common 1.382 times the length wave a (pink) was. Importantly, wave A pink was also a “three”, but was probably too brief to be a complete blue 2. If the count shown above is correct, wave c pink is due, and is likely to retrace at least .382 of the length of blue wave 1. The result would be a preliminary blue 2 target of 1.328.

If we do see a rally to that level over the next week, a head and shoulders will have formed, and wave 3 down would be next, carrying the euro to the 1.22 area if wave 3 blue is 1.618 times the length of wave 1 blue.

I’ll be explaining all of my long, intermediate, and short term counts for the world’s major stock markets, commodities and currencies during my weekend “Counts” webinar. All webinar enrollees will recieve access to a recording of the webinar immediately afterwards (whether in attendance “live” or not), and will also receive access to my weekend and mid-week EWP ScreenShots for the coming week.

Sid
http://ElliottWavePredictions.com

Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.

The initial movement down from the August 23 high to the August 28 low in the Euro counts best as a “three”, and the subsequent waves have so far been making lower highs and higher lows. It therefore appears most likely that a green wave 4 triangle is forming. Any movement below the extreme of orange “a” at 1.24647 would invalidate this green wave 4 triangle scenario. Also, any movement below 1.23829 would indicate that wave 4 blue in the Euro was very likely “in”.

If the green wave 4 triangle idea depicted on the 240 minute chart above is correct, the original thrust target from the larger pink b triangle is still sitting up there at 1.2682, right in the middle of a typical 4th wave target zone from where pink “c” will equal pink “a” at 1.26027 to the extreme of the wave 4 of one lesser degree at 1.27424.

There is no doubt that the movement up from the July 24 low is corrective.

Sid
http://ElliottWavePredictions.com