EURUSD 27th October, 2015

Today the euro chose to follow the path that was laid down by the alternate count, as it continued to move slowly and aimlessly towards the upside, coming short of reaching our first target for the alternate count by 4 pips.

This leaves us essentially in the exact same position we were yesterday. The upwards corrective structure looks complete, its initial target was almost reached, and momentum seems to be shifting, all indications of an impending reversal. We just need to wait for the price action itself to confirm it.

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: 1.1079
– Confirmation Point: 1.0989
– Downwards Target: 1.0979 – 1.0918
– Wave number: Minuette (v)
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal

Hourly Alternate Count
– Invalidation Point: 1.1334 – 1.0989
– Confirmation Point: 1.1079
– Upwards Target: 1.1080 – 1.1114
– Wave number: Minuette (iv)
– Wave structure: Corrective
– Wave pattern: Zigzag

Elliott Wave chart analysis for the EURUSD for 27th October, 2015. Please click on the charts below to enlarge.

Main Daily Wave Count

The bigger picture sees that the euro is moving towards the downside in cycle wave x, which is forming a double zigzag labeled primary waves W, X and Y.

Primary wave Y is forming a zigzag labeled intermediate waves (A), (B) and (C).

Intermediate wave (B) formed a double zigzag labeled minor waves W, X and Y, retracing a little less than 38.2% of intermediate wave (A), and it’s most likely complete.

Intermediate wave (C) is most likely forming an impulse labeled minor waves 1 through 5.

Within it, minor wave 1 is complete.

Minor wave 2 formed a double zigzag labeled minute waves w, x and y, retracing a bit over 61.8% of minor wave 1.

This count expects the euro to be moving towards the downside in minor waves 3, which must form an impulse labeled minute waves i through v. This will be confirmed by movement below 1.0809.

At 1.0473 minor wave 3 would reach 161.8% the length of minor wave 1, then at 0.9842 it would reach 261.8% of its length.

This wave count is invalidated by movement above 1.1495 as minute wave ii may not move beyond the start of minute wave i.

Main Hourly Wave Count

The main count sees that minute wave i of minor wave 3 is forming an impulse labeled minuette waves (i) through (v).

Within it, minuette wave (ii) formed a double combination labeled subminuette waves w, x and y, each forming a zigzag labeled micro waves A, B and C, retracing less than 38.2% of minuette wave (i).

Minuette wave (iii) formed an impulse labeled subminuette waves i through v, almost reaching 261.8% the length of minuette wave (i).

Within it, subminuette wave iii formed a strong extension labeled micro waves 1 through 5.

Subminuette wave v reached exactly 261.8% the length of subminuette wave i.

Minuette wave (iv) formed a triple zigzag labeled subminuette waves w through z, retracing about 23.6% of minuette wave (iii), and it’s most likely complete.

This count expects the euro to resume moving towards the downside in minuette wave (v), possibly as an impulse labeled subminuette waves i through v, to complete minute wave i. This will be confirmed by movement below 1.0989.

The MACD indicator supports this count by showing a bearish reversal in its early stages, and also by showing that momentum has just dipped below the zero-line.

At 1.0979 minuette wave (v) would reach 61.8% the length of minuette wave (i), then at 1.0918 it would reach 100% of its length.

This wave count is invalidated by movement above 1.1079 as subminuette wave ii may not move beyond the start of subminuette wave i.

Alternate Hourly Wave Count

The alternate count sees that minuette wave (iv) is still unfolding into a larger zigzag labeled subminuette waves a, b and c.

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 about 61.8% of subminuette wave a, and it’s either complete or near completion.

This count expects the euro to continue moving towards the upside in subminuette wave c to complete minuette wave (ii). This will be confirmed by movement above 1.1079.

At 1.1080 subminuette wave c would reach 61.8% the length of subminuette wave a, then at 1.1114 it would reach 100% of its length.

This wave count is invalidated by movement above 1.1334 as minuette wave (iv) may not enter the price territory of minuette wave (i). It’s also invalidated by movement below 1.0989 as subminuette wave b within this zigzag may not move beyond the start of subminuette wave a.

1 thought on “EURUSD 27th October, 2015”

  1. Hi Tamer,

    what a great decyphering of price move!!! I’m still not “tiptop” on countertrend -miserably failed on my demo account…Nady I’m still learning…- BUT managed to be in the stone fall from almost its start -with the trend…- Big thx always!!!

    Rgds
    Fran

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