EURUSD 26th August, 2015

As expected under the alternate count, the euro continued moving towards the downside, reached our first target, and came only 7 pips short of reaching our second target.

We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.

Hourly Main Count
– Invalidation Point: 1.1214
– Confirmation Point: 1.1561
– Upwards Target: 1.1725 – 1.1830
– Wave number: Minuette (v)
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal

Elliott Wave chart analysis for the EURUSD for 26th August, 2015. Please click on the charts below to enlarge.

Main Daily Wave Count

The bigger picture sees that the euro is still moving towards the downside in primary wave C, which is forming an impulse labeled intermediate waves (1) through (5).

Intermediate wave (4) is most likely forming a double combination labeled minor waves W, X and Y.

Within it, minor wave W formed a zigzag labeled minute waves a, b and c.

Minor wave x formed a double zigzag labeled minute waves w, x and y, retracing a bit over 61.8% of minor wave w.

Minor wave Y is also forming a zigzag labeled minute waves a, b and c.

Within it, minute waves a and b are complete.

Minute wave c is forming an impulse labeled minuette waves (i) through (v).

This count expects the euro to continue moving towards the upside in minute wave c to complete minor wave Y of intermediate wave (4).

At 1.1813 minor wave Y would reach 100% the length of minor wave W.

This wave count is invalidated by movement below 1.1214 as minuette wave (iv) may not enter the price territory of minuette wave (i).

Main Hourly Wave Count

This count sees that minuette wave (iii) formed an impulse labeled subminuette waves i through v, reaching twice the length of minuette wave (i).

Within it, subminuette wave iii formed a very strong extension labeled micro waves 1 through 5, reaching over 261.8% the length of subminuette wave i.

Subminuette wave iv was quite shallow, retracing a bit less than 23.6% of subminuette wave iii.

Subminuette wave v reached exactly 61.8% the combined length of subminuette waves i and iii.

Then, minuette wave (iv) formed a zigzag labeled subminuette waves a, b and c, retracing nearly 61.8% of minuette wave (iii).

Within it, subminuette wave (a) formed a leading diagonal labeled micro waves 1 through 5.

Subminuette wave (b) formed a zigzag labeled micro waves A, B and C, retracing 50% of subminuette wave (a).

Subminuette wave (c) formed an impulse labeled micro waves 1 through 5, completing the zigzag of minuette wave (iv).

This count expects the euro to start moving towards the upside in minuette wave (v) to complete minute wave c, and therefore minor wave Y, and therefore intermediate wave (4).

At 1.1725 minuette wave (v) would reach 61.8% the length of minuette wave (iii), then at 1.1830 it would reach 61.8% the combined lengths of minuette waves (i) and (iii).

This wave count is invalidated by movement below 1.1214 as minuette wave (iv) may not enter the price territory of minuette wave (i). It’s also invalidated by movement above 1.2500 as intermediate wave (4) may not enter the price territory of intermediate wave (1).

Alternate Daily Wave Count

This alternate count sees that minor wave Y, and therefore intermediate wave (4), are already complete.

Within it, minute wave b formed a running flat labeled minuette waves (a), (b) and (c), retracing almost 38.2% of minute wave a.

Minute wave c reached twice the length of minute wave a, and is either complete or very near completion.

This count expects the euro to start moving towards the downside in intermediate wave (5) to complete primary wave C of cycle wave x. This will be confirmed by movement below 1.1017.

At 1.0225 intermediate wave (5) would reach 100% the length of intermediate wave (1), then at 1.0220 it would reach 61.8% the length of intermediate wave (3).

This wave count is invalidated by movement above 1.2500 as intermediate wave (4) may not enter the price territory of intermediate wave (1). Once the euro reaches our confirmation point, we may lower the invalidation point to the end of intermediate wave (4), which currently stands at 1.1718.

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