By moving below 1.0603, EUR/USD is expected to move down to find support between 1.0441 and 1.0233. The market should remain below 1.0906, and it’s likely to find resistance around 1.0777.
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: 1.0906
– Confirmation Point: 1.0603
– Downwards Target: 1.0441 – 1.0233
– Wave number: Minute iii
– Wave structure: Motive
– Wave pattern: Impulse
Please click on the charts below to enlarge.
Main Weekly Wave Count
The bigger picture sees that the euro is moving towards the downside in black wave (C), which is forming an impulse labeled blue waves 1 through 5.
Blue wave 2 formed a double zigzag labeled pink waves w, x and y. It retraced 61.8% of blue wave 1, and it’s most likely complete.
This count expects the euro to moved towards the downside in blue wave 3. This will be confirmed by movement below 1.0340.
At 0.9947 blue wave 3 would reach 100% the length of blue wave 1, then at 0.9354 it would reach 161.8% 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.
As price moves below our confirmation point, we may lower the invalidation point to the end of blue wave 2, which currently stands at 1.0906.
Main Daily Chart Wave Count
This count sees that blue wave 3 is forming an impulse labeled pink waves i through v.
Pink wave ii formed a zigzag labeled green waves (a), (b) and (c). It retraced precisely 61.8% of pink wave i, and it’s most likely complete.
This count expects the euro to move towards the downside in pink wave iii. This will be confirmed by movement below 1.603.
At 1.0441 pink wave iii would reach 100% the length of pink wave i, then at 1.0233 it would reach 161.8% of its length.
This wave count is invalidated by movement above 1.0906 as pink wave ii may not move beyond the start of pink wave i.
As price moves below our confirmation point, we may lower the invalidation point to the end of pink wave ii, which currently stands at 1.0777.