EURUSD 31st January, 2017

Even though the market moved towards the upside as expected and reached both of our targets, the rally was strong enough to break above our invalidation point, therefore confirming our alternate count in the process.

Price is now only a few pips away of reaching the first target of our current main (previous alternate) count. Whether the market will continue on its rally towards our second target is not clear at this point, since the developing pattern can easily go either way.

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

Synopsis: By default, EURUSD would be expected to find resistance between 1.0820 and 1.0933. During this period, the market should remain above 1.0725 and ultimately above 1.0620.

Hourly Main Count
– Invalidation Point: 1.0725
– Confirmation Point: 1.0812
– Upwards Target: 1.0820 – 1.0933
– Wave number: Minor 2
– Wave structure: Corrective
– Wave pattern: Triple Zigzag

Elliott Wave chart analysis for the EURUSD for 31st 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 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 has already been 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.

Main Hourly Wave Count

This main hourly count sees that pink wave z is likely forming a zigzag labeled green waves (a), (b) and (c).

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

Within it, orange wave iv likely formed a contracting triangle labeled violet waves A through E.

This count expects the euro to continue moving towards the upside in orange wave v, to complete green wave (c), and therefore pink wave z, and therefore blue wave 2. This will be confirmed by movement above 1.0812.

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 below 1.0725 as orange wave iv of this impulse may not enter the price territory of orange wave i.

It’s worth noting that these three waves may be part of a larger impulse that itself is green wave (a). This would mean that pink wave z may very well take several days to complete. But for it to remain valid as a zigzag, price should remain above 1.0620.

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