As expected the euro moved toward the upside and reached both confirmation points. If all goes well, it’s now only a matter of time until the market reaches at least our first target.
Synopsis: The euro is likely to move higher to reach between 1.1890 and 1.1997, while it remains above 1.1716.
Hourly Main Count
– Invalidation Point: 1.1716
– Confirmation Point: –
– 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 21st 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.
Pink wave c is likely forming an impulse labeled green waves (i) through (v). There’s a possibility that, instead of an impulse, it turns out to be an ending diagonal, but we’ll remain focused on the more typical case until we see evidence otherwise.
This count expects the euro to move toward the upside in pink wave c to complete blue wave 4.
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.
This wave count is invalidated by movement below 1.1716 as green wave (ii) may not move beyond the start of green wave (i).