EURUSD 27th January, 2017

Instead of making a new low, the market went down just barely to test the previous low, and then rebounded upwards for about 65 pips.

This move looks ambiguous, even on the hourly chart, as it can be counted equally as an impulse with a truncated fifth wave and as a zigzag. This is why we’re introducing an alternate count that follows the possibility of another limited rally.

We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.

Synopsis: By movement below 1.0679, EURUSD would be expected to find initial support between 1.0657 and 1.0589. The market should find resistance around 1.0745, and it should ultimately remain below 1.0775.

Hourly Main Count
– Invalidation Point: 1.0775
– Confirmation Point: 1.0679
– Downwards Target: 1.0657 – 1.0589
– Wave number: Minuette (iii)
– Wave structure: Motive
– Wave pattern: Impulse

Elliott Wave chart analysis for the EURUSD for 27th January, 2017. Please click on the charts below to enlarge.

Main Daily Wave Count

The bigger picture sees that black wave (C) is likely forming an impulse labeled blue waves 1 through 5.

Within it, blue wave 1 formed a leading diagonal labeled pink waves i through v.

Blue wave 2 formed a zigzag labeled pink waves a, b and c.

Blue wave 3 is forming an impulse labeled pink waves i through v.

This count expects the euro to move towards the downside in blue wave 3. This will be confirmed by movement below 1.0340.

At 0.9815 blue wave 3 would reach 100% the length of blue wave 1, then at 0.9222 it would reach 161.8% of its length.

This wave count is invalidated by movement above 1.0775 as pink wave ii may not move beyond the start of pink wave i.

Main Hourly Wave Count

This main hourly count sees that pink wave i is likely forming an impulse labeled green waves (i) through (v).

Within it, green wave (i) formed an impulse labeled orange waves i through v.

Within it, orange wave iii formed a series of extensions, reaching 161.8% the length of orange wave i.

Orange wave iv formed a contracting triangle labeled violet waves A through E, retracing a little over 23.6% of orange wave iii.

Orange wave v ended in a 1-pip truncation above the end of orange wave iii.

Green wave (ii) is likely forming a zigzag labeled orange waves a, b and c. It should be complete very soon.

This count expects the euro soon to resume moving towards the downside in green wave (iii). This will be initially confirmed by movement below 1.0679.

Since green wave (ii) is incomplete, we can’t calculate wave targets for green wave (iii), so we’ll use the recent swing lows as the next logical targets: 1.0657 and 1.0589.

This wave count is invalidated by movement above 1.0775 as green wave (ii) may not move beyond the start of green wave (i).

Alternate Daily Wave Count

This alternate count sees that black wave (C) is likely forming an impulse labeled blue waves 1 through 5.

Within it, blue wave 1 formed a leading diagonal labeled pink waves i through v.

Blue wave 2 is forming a triple zigzag labeled pink waves w, y and z.

This count expects the euro to continue moving towards the upside in blue wave 2. This will be confirmed by movement above 1.0775.

At 1.0820 blue wave 2 would retrace 50% of blue wave 1, then at 1.0933 it would retrace 61.8% of its length.

This wave count is invalidated by movement above 1.1300 as blue wave 2 may not move beyond the start of blue wave 1.

Scroll to Top