After another minor test of the 1.0500 support level, the market spent the rest of the day moving impulsively towards the upside.
Now I count five clear waves upwards, so my confidence is very high that tomorrow will present a continuation of this short-term trend. Our targets for this rally remain the same, and only the invalidation point was slightly changed.
We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.
Synopsis:By default, EURUSD is expected to move towards the upside to find resistance between 1.0675 and 1.0711. It should remain above 1.0493.
Hourly Main Count
– Invalidation Point: 1.0493
– Confirmation Point: –
– Upwards Target: 1.0675 – 1.0711
– Wave number: Minuette (c)
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the EURUSD for 22nd February, 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, retracing 50% of blue wave 1.
Blue wave 3 is forming an impulse labeled pink waves i through v.
This count expects the euro to be moving towards the downside in blue wave 3. This will be confirmed by movement below 1.0340.
At 0.9869 blue wave 3 would reach 100% the length of blue wave 1, then at 0.9276 it would reach 161.8% of its length.
This wave count is invalidated by movement above 1.0829 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 ii is likely forming an expanded flat labeled green waves (a), (b) and (c).
Green waves (a) and (b) each formed a double zigzag labeled orange waves w, x and y.
Green wave (b) retraced green wave (a) by 114%. Within it, orange wave y reached exactly 161.8% the length of orange wave w, and within that, violet wave C reached slightly over 61.8% the length of violet wave A.
Green wave (c) is forming an impulse labeled orange waves i through v.
Orange wave i formed an impulse labeled violet waves 1 through 5.
Violet wave 5 reached exactly 61.8% the length of violet wave 3.
Orange wave ii is now underway, and I suspect it won’t take long to complete.
This count expects the euro to move towards the upside in green wave (c) to complete pink wave ii. This has already been largely confirmed by movement above 1.0556.
At 1.0675 pink wave ii would retrace 50% of pink wave i, then at 1.0711 it would retrace 61.8% of its length.
This wave count is invalidated by movement below 1.0493 as orange wave ii may not move beyond the start of orange wave i.