The euro started the day by moving a bit towards the upside, and then ended it by returning to where it started.
The pattern is still quite inconclusive, and it could easily go either way. These are the times when staying out of the market and waiting for a trend to form are probably the smartest things to do.
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: 1.0952
– Confirmation Point: 1.1006 – 1.1030
– Upwards Target: 1.1056 – 1.1105
– Wave number: Subminuette iii
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the EURUSD for 26th July, 2016. 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 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 (B) is forming a contracting triangle labeled blue waves A through E.
Within it, blue wave D formed a zigzag labeled pink waves a, b and c, retracing 61.8% of blue wave C and reaching 61.8% the length of blue wave B.
Blue wave E is forming a double zigzag labeled pink waves w, x and y.
This count expects the euro to move either sideways or towards the upside in blue wave E to complete black wave (B). This will be confirmed by movement above 1.1187.
At 1.1348 blue wave E would retrace 61.8% of blue wave D, then at 1.1587 it would reach 61.8% the length of blue wave C.
This wave count is invalidated by movement above 1.1616 as blue wave E of a contracting triangle may not move beyond the start of blue wave D. It’s also invalidated by movement below 1.0913 as pink wave x of a double zigzag may not move beyond the start of pink wave w.
Main Hourly Wave Count
This main count sees that pink wave y is forming a zigzag labeled green waves (a), (b) and (c).
Within it, green wave (a) is forming an impulse labeled orange waves i through v.
Within it, orange wave i formed a leading diagonal labeled violet waves 1 through 5.
Orange wave ii formed a zigzag labeled violet waves A, B and C, retracing a little over 61.8% of orange wave i. It’s either complete or near completion.
This count expects the euro to move towards the upside in orange wave iii. This will be initially confirmed by movement above 1.006, and it will be further confirmed by movement above 1.1030.
At 1.1056 orange wave iii would reach 100% the length of orange wave i, then at 1.1105 it would reach 161.8% of its length.
This wave count is invalidated by movement below 1.0952 as orange wave ii may not move beyond the start of orange wave i.
Alternate Daily Wave Count
This alternate daily count sees that blue wave D is forming a double zigzag labeled pink waves w, x and y.
Within it, pink wave w formed a zigzag labeled green waves (a), (b) and (c).
Pink wave x is forming a flat labeled green waves (a), (b) and (c).
This count expects the euro to move towards the downside in green wave (b). This will be confirmed by movement below 1.0913.
At 1.0913 green wave (b) would retrace 100% of green wave (a), then at 1.0838 it would retrace 127.2% of its length.
This wave count is invalidated by movement above 1.1616 as pink wave x of a double zigzag may not move beyond the start of pink wave w.