As expected the euro moved towards the upside, reached our first target, and so far has exceeded it by 11 pips.
At this point, the medium-term pattern is one small rally short of completion. In terms of momentum, the MACD indicator is showing a very pronounced bearish divergence, and other oscillators are already in a deep overbought condition. And with price’s coming up to the 1.2000 level, which is a tremendous resistance level, we have a plethora of reasons to place the market in position for trend reversal very soon.
Synopsis: EUR/USD is expected to move towards the upside to find resistance between 1.2006 and 1.2099, while it remains above 1.1942.
Hourly Main Count
– Invalidation Point: 1.1942
– Confirmation Point: 1.1986
– Upwards Target: 1.2006 – 1.2099
– Wave number: Subminuette v
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the EURUSD for 28th August, 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 3 is forming an impulse labeled pink waves i through v.
Pink wave v is forming an impulse labeled green waves (i) through (v).
Green wave (iii) reached over 161.8% the length of green wave (i).
Green wave (iv) formed a contracting triangle labeled orange waves a through e. It retraced about 23.6% of green wave (iii).
This count expects the euro to move towards the upside in green wave (v) to complete pink wave v.
At 1.2099 green wave (v) would reach 100% the length of green wave (i).
This wave count is invalidated by movement below 1.1773.
Main Hourly Wave Count
This main hourly count sees that green wave (v) is forming an impulse labeled orange waves i through v.
Orange wave ii retraced 78.6% of orange wave i.
Orange wave iii formed an impulse labeled violet waves 1 through 5, reaching over 261.8% the length of orange wave i.
Orange wave iv formed a zigzag labeled violet waves A, B and C. It retraced a little over 23.6% of orange wave iii, and it ended right at the low of the previous fourth wave of one lower degree.
Orange wave v is forming an impulse labeled violet waves 1 through 5.
Violet wave 3 formed an extension labeled aqua waves (1) through (5). It reached exactly 261.8% the length of violet wave 1, and it’s most likely complete.
Violet wave 4 should find support between 1.1970 and 1.1960.
This count expects the euro soon to move towards the upside in violet wave 5 to complete orange wave v and therefore green wave (v). This will be somewhat confirmed by movement above 1.1986.
At 1.2006 orange wave v would reach 161.8% the length of orange wave i, then at 1.2099 green wave (v) would reach 100% the length of green wave (i).
This wave count is invalidated by movement below 1.1942 as violet wave 4 of this impulse may not enter the price territory of violet wave 1.