As expected the euro moved toward the upside, reached our first target, came a third of the way toward our second target, then rapidly declined.
This type of rapid-fire oscillation, especially where each wave is fully contained within the preceding one, and even more so in the position of a B-wave, is highly indicative of a triangle formation.
By moving above 1.1243, price should move upwards to reach between 1.1256 and 1.1267, while remaining above 1.1199 and below 1.1281.
Hourly Main Count
– Invalidation Point: 1.1199 – 1.1281
– Confirmation Point: 1.1243
– Upward Target: 1.1256 – 1.1267
– Wave number: Minuette (e)
– Wave structure: Corrective
– Wave pattern: Zigzag
Elliott Wave chart analysis for the EURUSD for 18th 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 contracting triangle labeled green waves (a) through (e).
Green wave (d) formed a zigzag labeled orange waves a, b and c. It retraced exactly 78.6% of green wave (c) and reached nearly 78.6% the length of green wave (b), and it’s very likely complete.
This wave count expects the euro to move toward the upside in green wave (e) to complete pink wave b. This would be largely confirmed by movement above 1.1243.
At 1.1256 green wave (e) would retrace 61.8% of green wave (d), then at 1.1267 it would reach 61.8% the length of green wave (c).
This wave count would be invalidated by movement below 1.1199 as green wave (d) of this contracting triangle may not move beyond the start of green wave (c), and it would also be invalidated by movement above 1.1281 as green wave (e) of this contracting triangle may not move beyond the start of green wave (d).