As expected the euro moved toward the downside, reached both of our targets, and exceeded the second target by 18 pips. After half a dozen weeks of nearly continuous decline, I think the euro is finally preparing a significant bottom.
Month: July 2019
Even though we were in position for a weaker British Pound against American Dollar, the decline was more impulsive than anticipated. We are modifying the subdivisions of the decline from mid March highs to provide the best fit.
As expected the euro moved toward the downside and passed our initial confirmation point, but it’s yet to reach either of our targets.
The most recent weakness left the complete wave i pink count on thin ice, suggesting that lower lows remain in store for wave i pink.
As expected the euro moved toward the upside, reached both of our targets, and exceeded the second target only by 2 pips — then immediately dropped 60 pips.
The euro suffered a relatively strong continuation of its recent decline, forcing a revision of the low-level hourly count, but remaining quite consistent the larger picture of the daily chart.
We continue to look for signs to support the idea that an interim bottom has been registered and that a corrective bounce is in progress.
Now that the euro has fallen below 1.1192, it’s become much more likely that the sideways correction of the past week or so is now complete and a new round of motive decline has begun.
The euro continued its most recent decline for most of the day, but its action remained away from our invalidation point, which leaves our latest count very much the same.
Cable advanced as anticipated in line with the main hourly count. We still want to see further rally to favor the bullish outlook.