As expected the euro moved towards the upside, reached our first target, and exceeded it by 21 pips.
Price seems to be hitting resistance around 1.1075, and it’s possible that the market is pausing for a bit. If this is the case, we would expect to see a day of sideways consolidation, before the market resumes its low-degree upwards movement.
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: 1.1030
– Confirmation Point: –
– Downwards Target: 1.1049 – 1.1033
– Wave number: Subminuette iv
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, or Triangle
Elliott Wave chart analysis for the EURUSD for 27th 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.
Within it, pink wave x formed a double zigzag labeled green waves (w), (x) and (y), retracing over 78.6% of pink wave w.
This count expects the euro to move towards the upside in pink wave y to complete blue wave E of black wave (B).
At 1.1121 pink wave y would reach 61.8% the length of pink wave w, then at 1.1226 it would reach 100% of its length.
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 double zigzag labeled violet waves W, X and Y, retracing well over 78.6% of orange wave i.
Orange wave iii almost reached 161.8% the length of orange wave i. It’s either complete or possibly near completion.
This count expects the euro to move sideways in orange wave iv.
At 1.1049 orange wave iv would retrace 23.6% of orange wave iii, then at 1.1033 it would retrace 38.2% of its length.
This wave count is invalidated by movement below 1.1030 as orange wave iv of this impulse may not enter the price territory of orange wave i.
If price moves below this point, it’s still possible for this count to remain valid by counting green wave (a) as a leading diagonal, so long as price does not move below the end of orange wave ii.
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.