Archives for June 2016
When the market ends the week with a massive plummet of over 450 pips within hours, it seems very reasonable to declare that the new downtrend is starting with a definite bang.
Members of our premium service can see some interesting price action and relationships on our labeled hourly charts. But even without this level of detail, the daily chart you’ll see below already shows some very good evidence that the market has found a new major top.
We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.
Weekly Main Count
– Invalidation Point: 1.1428
– Confirmation Point: –
– Downwards Target: 1.0909 – 1.0589
– Wave number: Minute iii
– Wave structure: Motive
– Wave pattern: Impulse
Please click on the charts below to enlarge.
The bigger picture sees that the euro is moving towards the downside in teal wave x, which is forming a double zigzag labeled maroon waves W, X and Y.
Maroon wave Y is forming a zigzag labeled black waves (A), (B) and (C).
Black wave (A) formed an impulse labeled blue waves 1 through 5.
Black wave (B) formed a running flat labeled blue waves A, B and C.
Both blue waves A and B formed zigzags labeled pink waves a, b and c.
Blue wave B retraced exactly 95% of blue wave A, fulfilling all the requirements of a flat correction.
Blue wave C formed an ending diagonal labeled pink waves i through v, and failed to make a new high above that of blue wave A.
This completed black wave (B) at 1.1616.
Main Weekly Wave Count
This main count sees that black wave (C) is forming an impulse labeled blue wave 1 through 5.
Within it, blue wave 1 is forming an impulse labeled pink waves i through v.
Within it, pink wave i formed an impulse labeled green waves (i) through (v).
Pink wave ii formed a zigzag labeled green waves (a), (b) and (c), retracing 61.8% of pink wave i.
This count expects the euro to move towards the downside in pink wave iii. This has already been confirmed by movement below 1.1098.
At 1.0909 pink wave iii would reach 100% the length of pink wave i, then at 1.0589 it would reach 161.8% of its length.
This wave count is invalidated by movement above 1.1428 as no wave within pink wave iii may move beyond the start of the first wave.