By moving above 1.1712 in such a strong fashion, where the market rallied about 125 pips, I find the most fitting count for the preceding movement is that it was a complex double combination in wave 4, which would make the recent rally most probably the third wave of a wave 5.
This means the market still has a bit of room to move towards the upside before the entire rally is complete, but most of the action is probably already behind us.
Synopsis: By moving above 1.1748, EUR/USD is expected to move towards the upside quite timidly to find resistance around 1.1768, while it remains above 1.1655 and ideally between 1.1718 and 1.1700.
Hourly Main Count
– Invalidation Point: 1.1655
– Confirmation Point: 1.1748
– Upwards Target: 1.1768
– Wave number: Minuette (v)
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the EURUSD for 26th July, 2017. Please click on the charts below to enlarge.
Main Daily Wave Count
The bigger picture sees that the euro is moving sideways in maroon wave B, which is forming a flat labeled black waves (A), (B) and (C).
Black wave (C) is forming an impulse labeled blue waves 1 through 5.
Blue wave 5 is forming an impulse labeled pink waves i through v.
This count expects the euro to continue moving towards the upside in blue wave 5.
At 1.1811 maroon wave B would retrace 38.2% of maroon wave A, then at 1.1909 blue wave 5 would reach 161.8% the length of blue wave 1.
This wave count is invalidated by movement below 1.1445 as pink wave iv of this impulse may not enter the price territory of pink wave i.
Main Hourly Wave Count
This main hourly count sees that pink wave iii is forming an impulse labeled green waves (i) through (v).
Green wave (iv) formed a complex double combination labeled orange waves w, x and y. It retraced close to 38.2% of green wave (iii), exhibited alternation with green wave (ii), and is now complete.
Green wave (v) is forming an impulse labeled orange waves i through v.
Orange wave iii reached a bit over 261.8% the length of orange wave i.
Orange wave iv retraced nearly 23.6% of orange wave iii. It may very likely be complete. If it isn’t, then it should find support between 1.1718 and 1.1700.
This count expects the euro to move a little bit towards the upside in orange wave v to complete green wave (v). This will be confirmed by movement above 1.1748.
At 1.1768 green wave (v) would reach 78.6% the length of green wave (iii).
This wave count is invalidated by movement below 1.1655 as orange wave iv of this impulse may not enter the price territory of orange wave i.