I was hoping to see an immediate correction to the previous decline, but the market chose to precede that with another 70-pip dip to make a new low first.
Synopsis: EUR/USD is expected to move toward the upside to reach between 1.1636 and 1.1674, while it remains below 1.1725.
Hourly Main Count
– Invalidation Point: 1.1725
– Confirmation Point: 1.1624
– Upward Target: 1.1636 – 1.1674
– Wave number: Subminuette iv
– Wave structure: Corrective
– Wave pattern: Zigzag, Flat, Triangle, or Combination
Elliott Wave chart analysis for the EURUSD for 27th 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, and therefore blue wave 4.
At 1.1481 blue wave 4 would retrace 38.2% of blue wave 3.
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 twice the length of orange wave i.
Within it, violet wave 3 formed an extension labeled aqua waves (1) through (5).
Violet wave 5 formed an expanding ending diagonal labeled aqua waves (1) through (5), and it reached twice the length of violet wave 1.
This count expects the euro to be moving sideways to upwards in orange wave iv. This will be somewhat confirmed by movement above 1.1624.
The MACD supports this count by showing a bullish divergence between the ends of violet waves 3 and 5.
At 1.1636 orange wave iv would retrace 23.6% of orange wave iii, then at 1.1674 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.