EURUSD 26th April, 2016

Now that the euro has invalidated our main count, and with the look and internal structure of the developing pattern, it’s time to abandon the previous labeling in favor of a more fitting count. The new count isn’t without its own peculiarities, but it definitely fills some of the nagging holes of the previous count.

The corrective nature of the current movement is almost self-evident, so today both of our hourly charts will explore the structure of the unfolding zigzag. And while both counts are practically equal in probability, there is really no way to confirm the alternate count except by examining its subdivisions once they are complete.

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: 1.1400
– Confirmation Point: 1.1218
– Downwards Target: 1.1197 – 1.1158
– Wave number: Micro 3
– Wave structure: Actionary Corrective
– Wave pattern: Zigzag

Hourly Alternate Count
– Invalidation Point: 1.1465
– Confirmation Point: –
– Upwards Target: 1.1348 – 1.1383
– Wave number: Micro C
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal

Elliott Wave chart analysis for the EURUSD for 26th April, 2016. Please click on the charts below to enlarge.

Main Daily Wave Count

The bigger picture sees that the euro has been moving sideways in black wave (B), which is forming a contracting triangle labeled blue waves A through E.

Within it, blue wave C is forming a double zigzag labeled pink waves w, x and y.

Within it, pink wave y is forming a zigzag labeled green waves (a), (b) and (c).

Green wave (a) formed a leading diagonal labeled orange waves i through v.

Green wave (b) is forming a zigzag labeled orange waves a, b and c.

This count expects the euro to move towards the downside to complete green wave (b). This will be confirmed by movement below 1.1218.

At 1.1143 green wave (b) would retrace 50% of green wave (a), then at 1.1067 it would retrace 61.8% of its length.

This wave count is invalidated by movement above 1.1465 as orange wave b of this zigzag may not move beyond the start of orange wave a. It’s also invalidated by movement below 1.0821 as green wave (b) of this zigzag may not move beyond the start of green wave (a).

Main Hourly Wave Count

This main count sees that orange wave b formed a zigzag labeled violet waves A, B and C, retracing between 61.8% and 78.6% of orange wave a.

Orange wave c is forming an ending diagonal labeled violet waves 1 through 5.

Within it, violet waves 1 and 2 both formed zigzags labeled aqua waves (A), (B) and (C).

This count expects the euro to move towards the downside in violet wave 3. This will be confirmed by movement below 1.1218.

At 1.1197 violet wave 3 would reach 78.6% the length of violet wave 1, then at 1.1158 it would reach 100% of its length.

This wave count is invalidated by movement above 1.1400 as violet wave 2 may not move beyond the start of violet wave 1.

Alternate Hourly Wave Count

This alternate count sees that orange wave b is still unfolding as an expanded (or running) flat labeled violet waves A, B and C.

Within it, violet waves A and B both formed zigzags labeled aqua waves (A), (B) and (C).

This count expects the euro to move towards the upside in violet wave C to complete orange wave b.

At 1.1348 violet wave C would reach 78.6% the length of violet wave A, then at 1.1383 it would reach 100% of its length.

This wave count is invalidated by movement above 1.1465 as orange wave b of this zigzag may not move beyond the start of orange wave a.

3 thoughts on “EURUSD 26th April, 2016”

  1. For your consideration: Since Sunday open abc as LD, flat and now ED. In leg 5 of ED so exp today’s high to be challenged.

    1. Hi Ng,

      This sounds interesting. But I’m not totally sure which Sunday open you mean, could you attach a chart?

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