Archives for July 2016
In the many days following the Brexit hysteria, the market has done nothing but moving sideways in a converging consolidation.
Price kept far away from the invalidation points of both of our counts, and it has also kept its distance from all of our confirmation or target points. Nonetheless, several factors lead us to believe it’s now time to make some changes to our long- and medium-term perspectives.
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: 1.1616 – 1.0913
– Confirmation Point: 1.1187
– Upwards Target: 1.1348 – 1.1587
– Wave number: Minor E
– Wave structure: Corrective
– Wave pattern: Double Zigzag or Triangle
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) is forming a contracting triangle labeled blue waves A through E.
Main Weekly Wave Count
Within black wave (B), 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.