Wednesday, October 31, 2012

EUR/USD Elliott wave perspective


Its seems evident that the EUR/USD is in a contracting triangle wave iv down as of the daily chart posted above. All of which are part of a wave C of an expanded flat correction higher as seems evident on the chart above. the iiird wave travelled 2.618x of wave 1 hence was the extended wave which means we can expect the fifth wave to resemble wave i which means it most likely will be a swift short thrust out of this triangle wave iv after completion (currenctly in wave d of the wave iv triangle)

Looking at the triangle in greater detail it seems evident that wave B was the complex leg (Double zigzag)of the triangle which signals that the ONE complex leg to be expected in the triangle is complete and the rest of its legs will most likely be single and simple zigzags.



looking at wave d of the triangle is greater detail my preferred count is the i-ii-iii count rather than calling wave d complete. I hold this preffered count for several reasons.
1) The move is not contained between 2 parallel lines which is typical of a i-ii-iii count
2) The wave iii travelled 1.618x wave i which is a typical target for wave iii
3) The wave ii retraced almost all of wave i which is not typical of a wave b which mostly is limited to 79% of wave a

Regards,
Ahmed Farghaly

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