The euro confirmed the alternate count by moving toward the downside and coming exactly 1 pip short of reaching our target.
No objective confirmation of a trend reversal has appeared just yet. But seeing how the momentum is showing bullish divergence on both the daily and the hourly charts, it’s reasonable to expect that, should any further decline takes place, the downward potential is fairly limited.
Synopsis: By moving above 1.1789 and then 1.1822, the euro is likely to move higher to reach between 1.1890 and 1.1997, while it remains ideally (but not necessarily) above 1.1716.
Hourly Main Count
– Invalidation Point: –
– Confirmation Point: 1.1789 – 1.1822
– Upward Target: 1.1890 – 1.1997
– Wave number: Minute c
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal
Elliott Wave chart analysis for the EURUSD for 18th May, 2018. Please click on the charts below to enlarge.
Main Daily Wave Count
This main daily count sees that the euro completed maroon wave B and is now moving in a new downtrend in maroon wave C.
Maroon wave C is forming an impulse labeled black waves (1) to (5).
Black wave (1) is forming an impulse labeled blue waves 1 to 5.
Blue wave 2 retraced 78.6% of blue wave 1.
Blue wave 3 reached well over twice the length of blue wave 1.
This count expects the euro to move sideways to upwards in blue waves 4.
Since blue wave 2 formed a deep zigzag, it’s very likely that blue wave 4 will be shallow and largely sideways.
At 1.1962 blue wave 4 would retrace 23.6% of blue wave 3, then at 1.2048 it would retrace 38.2% of its length.
This wave count is invalidated by movement above 1.2216 as blue wave 4 of this impulse may not enter the price territory of blue wave 1.
Main Hourly Wave Count
This main hourly count sees that blue wave 4 is forming a running or expanded flat labeled pink waves a, b and c.
Pink wave b formed a zigzag labeled green waves (a), (b) and (c).
Green wave (a) formed an impulse labeled orange waves i through v.
Green wave (b) formed a double combination labeled orange waves w, x and y.
Green wave (c) formed an ending diagonal labeled orange waves i through v.
Pink wave b, all in all, retraced exactly 161.8% of pink wave a, and so it’s most likely complete or near completion.
This count expects the euro to move toward the upside in pink wave c to complete blue wave 4. This will be initially confirmed by movement above 1.1789, and it will be further confirmed by movement above 1.1822.
At 1.1890 pink wave c would reach 100% the length of pink wave a, then at 1.1997 it would reach 161.8% of its length.
Once price moves above our confirmation points, this wave count is invalidated by movement below 1.1716.