As expected last week the euro moved towards the downside and reached the first target of our main count almost to the pip. It’s highly likely that the euro has just made a temporary bottom and is about to reverse direction towards the upside — at least for a while.
We’re updating our count to reflect the most recent price action and to present tighter targets and invalidation points.
6-Hour Main Count
– Invalidation Point: 1.38324
– Confirmation Point: –
– Upwards Target : 1.3500 – 1.3627
– Wave number: Minuette (b)
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, Triangle, or Combination
Elliott Wave chart analysis for the EURUSD for 8th November, 2013. Please click on the charts below to enlarge.
Main Weekly Wave Count
The bigger picture sees the euro within primary wave B to the upside, and within that in intermediate wave (C) to the upside, and within that in minor wave 3 to the upside.
Within minor wave 3, minute waves i unfolded as an impulse labeled minuette waves (i) through (v).
Minute wave ii is most likely unfolding as a zigzag labeled minuette waves (a), (b) and (c).
Minuette wave (a) formed an impulse labeled subminuette waves i through v, which are well contained within their Elliott channel.
This count expects that minuette wave (a) is either complete or very near completion and that the euro is about to start moving towards the upside in minuette wave (b).
At 1.3500 minuette wave (b) would retrace 38.2% of minuette wave (a), and at 1.3627 it would retrace 61.8% of its length.
This wave count is invalidated by movement below 1.27554 as minute wave ii may not move beyond the start of minute wave i. It’s also invalidated by movement above 1.38324 as within the zigzag of minute wave ii minuette wave (b) may not move beyond the start of minuette wave (a).