By movement above 1.0905 the market invalidated our main count and shifted our focus toward the alternate count, reaching exactly midway between its two expected targets.
At this point there’s no more relevant data that would drastically alter either of counts (after being modified to account for the most recent price actin). So basically today we have two reformed versions of yesterday’s counts.
We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.
By movement below 1.0851 EURUSD would be expected to find support between 1.0813 and 1.0804, while it remains below 1.0947. But by movement above 1.0947 EURUSD would be expected to find resistance between 1.0952 and 1.1009, while it remains above 1.0851 and below 1.1153.
Hourly Main Count
– Invalidation Point: 1.0947
– Confirmation Point: 1.0851
– Downwards Target: 1.0813 – 1.0804
– Wave number: Subminuette v
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal
Hourly Alternate Count
– Invalidation Point: 1.0851 – 1.1153
– Confirmation Point: 1.0947
– Upwards Target: 1.0952 – 1.1009
– Wave number: Micro Z
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, or Triangle
Elliott Wave chart analysis for the EURUSD for 26th October, 2016. Please click on the charts below to enlarge.
Main Daily Wave Count
The bigger picture sees that the euro is moving sideways in black wave (B), which is forming a contracting triangle labeled blue waves A through E.
Within it, blue wave D 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).
Within it, green wave (c) is forming an impulse, reaching over 161.8% the length of green wave (a), and it should be very near completion.
Price is likely to hit a bottom between 1.0813 and 1.0662. At 1.0813 pink wave y would reach 78.6% the length of pink wave w, then at 1.0662 it would reach 100% of its length.
Blue wave E will likely form a zigzag labeled pink waves a, b and c.
This count expects the euro very soon to move towards the upside in blue wave E to complete black wave (B).
At 1.1295 black wave (B) would retrace 23.6% of black wave (A).
This wave count is invalidated by movement above 1.1616 as blue wave E in this contracting triangle may not move beyond the start of blue wave D. It is also invalidated by movement below 1.0525 as blue wave D may not move beyond the start of blue wave C.
Main Hourly Wave Count
This main count sees that green wave (c) is forming an impulse labeled orange waves i through v.
Within it, orange wave iii formed an extension labeled violet waves 1 through 5 and reached 423.6% the length of orange wave i.
Orange wave iv formed a double combination labeled violet waves W, X and Y, retracing nearly 23.6% of orange wave iii.
Within it, violet wave W formed a flat, and violet waves X and Y formed zigzags, each labeled aqua waves (A), (B) and (C).
Orange wave v is likely forming an impulse labeled violet waves 1 through 5.
This count expects the euro to move towards the downside in orange wave v to complete green wave (c), and therefore pink wave y, and therefore blue wave D. This will be confirmed by movement below 1.0851.
At 1.0813 pink wave y would reach 78.6% the length of pink wave w, then at 1.0804 orange wave v would reach 161.8% the length of orange wave i.
This wave count is invalidated by movement above 1.0947 as violet wave 2 may move beyond the start of violet wave 1.
Alternate Hourly Wave Count
This alternate count sees that orange wave iv is forming a triple combination labeled violet waves W through Z.
Within it, the second violet wave X should be very near completion.
This count expects the euro to move towards the upside in violet wave Z to complete orange wave iv. This will be confirmed by movement above 1.0947.
At 1.0952 orange wave iv would retrace 23.6% of orange wave iii, then at 1.1009 it would retrace 38.2% of its length.
This wave count is invalidated by movement below 1.0851 as the second violet wave X of this triple combination is extremely unlikely to move beyond the start of violet wave Y. It’s also invalidated by movement above 1.1153 as orange wave iv of this impulse may not enter the price territory of orange wave ii.