The euro saw very little change over the course of the day. This leaves our count exactly the same, neither supporting nor undermining it.
As expected the euro moved toward the downside, easily reached both of our targets, and exceeded the second target by 21 pips.
There is a lot of argument to be made in favor of another, very small and temporary decline. However, the current decline has more than reasonably fulfilled all of its requirements, so it makes more sense to prepare for a continuation of the larger advance.
Cable’s decline is in line with the near-term bearish outlook. So far, Cable fell short of the cited target, but if we are on the right track, Cable should have lower lows in store.
A corrective bounce should be in the cards for GBPUSD before the final decline to complete the third leg of the larger degree correction.
As always we will wait for the hourly count confirmation point to be reached to gain confidence in this outlook. As a side note, pay attention to the upper boundary of the impulse channel on the hourly chart.
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Even though the euro barely managed to break below 1.1112, this decline successfully invalidated the previous main count and necessitated the introduction of a new one.
The current main count expects an even stronger, more ambitious advance over both the short and medium terms.
As expected the euro found support exactly at 1.1129 and then moved upwards past the initial confirmation point at 1.1158.
At this point, the main count remains exactly the same.
As expected the euro moved toward the upside, easily reached our first target at 1.1174, and exceeded it by 25 pips.
From that high, price suffered a relatively strong decline — so strong, in fact, that it formed an obvious shooting star candlestick pattern on the daily chart itself.
Such a decline would normally have me consider the preceding rally complete. However, there are several observations which lead me to expect at least some measure of upward continuation.
GBPUSD traded on up, hitting both our targets and it continued to register higher highs.
The sharpness of the advance was more than what we initially anticipated. However, at this stage, a number of clues are starting to emerge to question the sustainability of the recent bullish action.
It’s aggressive, but today’s count suggests that the uptrend is either complete for the short-term or on the verge of a final thrust before succumbing to a corrective retreat.
As expected the euro rally strongly, spanning the largest daily range in over a week, and being carried by the highest trading volume in over 3 weeks.
The details of the rally are still a little fuzzy, but there’s enough data to sketch out a preliminary hourly count. However, I’m not yet comfortable enough to be tied to the smaller-degree wave labels, so the targets and invalidation points are still set at a relatively high degree.
In a nearly exact replica of yesterday’s price action, albeit with a bit more bullishness, the euro continued moving slowly toward the upside.
The consistent upward slant of this move still supports the main count, but it also leaves its labels and targets exactly the same.
The euro traded the entire day within a 40-pip range. The upward slant of this move slightly supports the main count, but it also leaves it exactly the same