As expected by the hourly count, the euro saw a relatively strong decline. Price reached our first target and appears to be on its way toward the second target.
Due to the unusual daily volatility of this move, I’m not comfortable enough to label its structure on the hourly chart. Thankfully, and until the pattern clears up a bit, we already have a logical target at one degree higher.
Remember: the daily chart assumes the completion of a downward wave, whereas the hourly chart assumes that said wave is still unfolding.
By moving below 1.1289, price should move lower to reach around 1.1256, while remaining below 1.1394.
Hourly Main Count
– Invalidation Point: 1.1394
– Confirmation Point: 1.1289
– Downward Target: 1.1256
– Wave number: Minuette (v)
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal
Elliott Wave chart analysis for the EURUSD for 24th January, 2019. Please click on the charts below to enlarge.
Main Daily Wave Count
This main daily count sees that the euro is moving toward the downside in an impulse labeled black waves (1) to (5).
Black wave (2) formed a running double combination labeled blue waves W, X and Y. It retraced 38.2% of black wave (1) at its highest point, and it ended a little below the 23.6% retracement level.
Black wave (3) is forming an impulse labeled blue waves 1 to 5.
Blue wave 1 is likely forming an impulse labeled pink waves i through v.
Pink wave i is possibly complete.
This count expects the euro to move toward the upside in pink wave ii.
At 1.1396 pink wave ii would retrace 38.2% of pink wave i, then at 1.1462 it would retrace 61.8% of its length.
This wave count would be invalidated by movement above 1.1569 as pink wave ii may not move beyond the start of pink wave i.
Main Hourly Wave Count
This main hourly count sees that pink wave i is still unfolding, forming an impulse labeled green waves (i) through (v).
Green wave (iv) formed a double combination labeled orange waves w, x and y. It’s retraced a little below 23.6% of green wave (iii).
This count expects the euro is still moving toward the downside in green wave (v). This would be further confirmed by movement below 1.1289.
At 1.1256 green wave (v) would reach 161.8% the length of green wave (i).
This wave count would be practically invalidated by movement above 1.1394.