Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.
Here is an update on my main wave count for the Euro. It calls for an impulsive move up into the .382-.618 fib zone. The real tell-tale sign for me that the top for the Euro is “in” at 1.49421 is that the aggressive move to a new low that started at 1.43450 and ended at 1.39687 looks like a “three”. This would count out the possibility of a complete ABC zigzag down from the 1.49421 high to complete a wave 4 pink, if in fact the 1.49421 high was only the apex of pink wave 3. It also counts out a 1-2-1-2 bearish count. So, since the May 4 high, I believe we’ve seen an impulsive pink wave one complete, and we’re now in a WXY in the shape of an expanded flat for pink wave 2, with a more normal, deeper retracement into the .382-.618 fib zone or higher expected.
There is a nice target zone near the .0382 fib which includes the extreme of wave 4 of one lesser degree (shown by a green horizontal line), and the 2.618 fib extension of the wave labeled wave a orange, shown by an orange horizontal line. I’ll be looking for a purple wave 3 to be pointed out by a MACD extreme, and then a new wave 5 purple high, accompanied by MACD divergence for that long awaited opportunity to once again get short. I’ll also be looking at the wave structure in the stock market for similar clues of a completed upward structure at about the same time for confirmation.