Even though the market spent the day edging upwards, it remained below the proposed resistance line. Looking at it in another way, this recent rally failed to match the preceding decline, even though it took more time to form.
This is usually a dependable bearish sign, which fits well with our current count.
Synopsis: EUR/USD is expected to move towards the downside to find support between 1.1621 and 1.1573, while it remains ideally (but not necessarily) below 1.1777.
Hourly Main Count
– Invalidation Point: 1.1777
– Confirmation Point: 1.1700
– Downwards Target: 1.1621 – 1.1573
– Wave number: Minute iv
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, or Triangle
Elliott Wave chart analysis for the EURUSD for 28th 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 iv is most likely forming a flat labeled green waves (a), (b) and (c).
Green wave (b) retraced 90% of green wave (a). This fulfills the minimum requirements for a B-wave within a flat correction, so it may well be complete (although not necessarily).
This count expects the euro to resume moving towards the downside in green wave (c) to complete pink wave iv. This will be largely confirmed by movement below 1.1700.
At 1.1621 pink wave iv would retrace 38.2% of pink wave iii, then at 1.1573 it would retrace 50% of its length.
Since green wave (b) is not yet confirmed to be complete, no invalidation point may be placed at its terminus. But the market should at least find strong resistance at 1.1777.