The euro took a heavy hit as the market spent almost the entire day falling rapidly and consistently to lose over 200 pips of its value.
Clearly this invalidates our previous immediately-bullish count and promotes the alternate daily count. I’ve made a few minor changes to it to better fit the new developments, but its implications are still largely the same.
Synopsis: EUR/USD is expected to move toward the upside to reach between 1.1674 and 1.1705, while it remains below 1.1725.
Hourly Main Count
– Invalidation Point: 1.1725
– Confirmation Point: 1.1655
– Upward Target: 1.1674 – 1.1705
– Wave number: Subminuette iv
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, Triangle, or Combination
Elliott Wave chart analysis for the EURUSD for 26th October, 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 formed an impulse labeled pink waves i through v, and reached well over 261.8% the length of blue wave 1.
Blue wave 4 is still unfolding as a double zigzag labeled pink waves w, x and y.
Pink wave y is forming a zigzag labeled green waves (a), (b) and (c).
This count expects the euro to continue moving toward the downside in green wave (c) to complete pink waves y.
At 1.1619 pink wave y would reach 61.8% the length of pink wave w, then at 1.457 it would reach 100% of its length.
Main Hourly Wave Count
This main hourly count sees that 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.
Orange wave ii formed a zigzag labeled violet waves A, B and C.
Orange wave iii formed an impulse labeled violet waves 1 through 5. It reached 161.8% the length of orange wave i.
Within it, violet wave 5 reached 100% the length of violet wave 1.
Since the end of violet wave 3, and despite further price declines, the MACD histogram has been consistently rising.
These last three observations suggest that orange wave iii is complete or very near completion.
This count expects the euro to move toward the upside in orange wave iv.
At 1.1674 orange wave iv would retrace 23.6% of orange wave iii, then at 1.1705 it would retrace 38.2% of its length.
This wave count is invalidated by movement above 1.1725 as orange wave iv of this impulse may not enter the price territory of orange wave i.