As expected the euro moved toward the upside, reached both of our targets, and exceeded the second target by 38 pips so far. Odds are in favor of another small-to-moderate rally to end this part of the larger correction.
Synopsis: As price moves above 1.1693, the euro will likely move upwards to reach between 1.1719 and 1.1728, while it remains above 1.1622 and ideally above 1.1660.
Hourly Main Count
– Invalidation Point: 1.1622
– Confirmation Point: 1.1693
– Upward Target: 1.1719 – 1.1728
– Wave number: Minuette (v)
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal
Elliott Wave chart analysis for the EURUSD for 27th August, 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) formed an impulse labeled blue waves 1 to 5.
This count sees that black wave (1) is complete and expects the euro to move toward the upside in black wave (2). This has been almost fully confirmed by movement above 1.1628, and it will be completely confirmed by movement above 1.1748.
At 1.1780 black wave (2) would retrace 38.2% of black wave (1), at 1.1928 it would retrace 50% of its length, then at 1.2076 it would retrace 61.8% of its length.
This wave count is invalidated by movement above 1.2555 as black wave (2) may not move beyond the start of black wave (1).
Main Hourly Wave Count
This count sees that black wave (2) is likely unfolding as a flat labeled blue waves A, B and C.
Blue wave A is likely forming a zigzag labeled pink waves a, b and c.
Pink wave c is forming an impulse labeled green waves (i) through (v).
Green wave (v) is forming another extension labeled orange waves i through v.
Orange waves i, ii and iii should be complete, and it’s very likely that orange wave iv is soon to be complete as well.
This count expects the euro soon to resume moving toward the upside in orange wave v to complete green wave (v), and therefore pink wave c. This will be confirmed by movement above 1.1693.
At 1.1719 green wave (v) would reach 100% the length of both orange waves i and iii, then at 1.1728 pink wave c would reach 61.8% the length of pink wave a.
This wave count is invalidated by movement below 1.1622 as orange wave iv of this impulse may not enter the price territory of orange wave i. The euro should find support around 1.1660.