As expected the euro started moving sideways to upwards in what seems to be a clearly corrective fashion. Our targets have not been reached, however, so our count remains the same.
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: 1.1718
– Confirmation Point: 1.1310
– Upwards Target: 1.1371 – 1.1503
– Wave number: Minor 2
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, or Combination
Elliott Wave chart analysis for the EURUSD for 29th 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) formed 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 also formed a zigzag labeled minute waves a, b and c.
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 touched the upper trend line of the channel drawn around minor waves W, X and Y.
This count expects the euro to start moving towards the downside in intermediate wave (5), which will most likely form an impulse labeled minor waves 1 through 5, to complete primary wave C of cycle wave x. This will be confirmed by movement below 1.1017.
At 1.0462 intermediate wave (5) would reach the end of intermediate wave (3), then at 1.0220 it would reach 61.8% the length of intermediate wave (3).
This wave count is invalidated by movement above 1.1718 as minor wave 2 may not move beyond the start of minor wave 1.
Main Hourly Wave Count
This count sees that minor wave 1 of intermediate wave (5) formed an impulse labeled minute waves i through v.
Within it, minute wave i formed an impulse labeled minuette waves (i) through (v).
Minute wave ii formed a zigzag labeled minuette waves (a), (b) and (c), retracing 50% of minute wave i.
Minute wave iii formed an impulse labeled minuette waves (i) through (v), with minuette wave (iii) forming an extension labeled subminuette waves i through v.
Minute wave iv formed a double zigzag labeled minuette waves (w), (x) and (y).
This count expects the euro to start moving towards the upside in minor wave 2. This will be somewhat confirmed by movement above 1.1310.
The MACD supports this count by showing a clear bullish divergence between the ends of minute wave v and iii, which is the typical signal at the end of an impulse.
At 1.1371 minor wave 2 would retrace 38.2% of minor wave 1, then at 1.1503 it would retrace 61.8% of its length.
This wave count is invalidated by movement above 1.1718 as minor wave 2 may not move beyond the start of minor wave 1. No invalidation point may be placed on the downside at this point, as minor wave 2 may develop into an expanded flat.