In complete disregard to yesterday’s expectation, the euro suffered an impulsive decline that nearly wiped out all of its gain over the past week.
And yet, the fact that this decline still hasn’t managed to properly test the support at 1.1192 may be a clue that indicates that this decline may be merely the middle phase of a flat correction. Not only does this interpretation maintain the larger outlook of the main count and its targets, but it also explains several, otherwise problematic aspects of this entire movement.
By moving above 1.1237, price should move upwards to reach around 1.1291, while remaining above 1.1192.
Hourly Main Count
– Invalidation Point: 1.1192
– Confirmation Point: 1.1237
– Upward Target: 1.1291
– Wave number: Minuette (c)
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal
Elliott Wave chart analysis for the EURUSD for 16th July 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 (1) is forming a leading diagonal labeled blue waves 1 through 5.
Blue wave 3 formed a zigzag labeled pink waves a, b and c.
Blue wave 4 also formed a zigzag labeled pink waves a, b and c.
Pink wave b formed an impressively expanded flat and pink wave c formed an impressively strong impulse.
Blue wave 5 is likely also forming a zigzag labeled pink waves a, b and c.
This count expects the euro to move toward the downside in blue wave 5 to complete black wave (1). This would be confirmed by moving below 1.1180.
At 1.1106 blue wave 5 would reach the low of blue wave 3, then at 1.1057 it would reach 50% of its length.
Price should meet strong resistance around 1.1411.
Main Hourly Wave Count
This main hourly count sees that pink wave b is forming a flat labeled green waves (a), (b) and (c).
Green wave (b) itself formed a flat labeled orange waves a, b and c. It retraced 90% of green wave (a), and it’s very likely complete.
This wave count expects the euro to move toward the upside in green wave (c) to complete pink wave b. This would be tentatively confirmed by movement above 1.1237.
At 1.1291 green wave (c) would reach 100% the length of green wave (a).
This wave count should find strong support around 1.1192.