Possible Elliot Wave Count - EURUSD
If we analyse the EURUSD chart carefully then we can conclude that only two possible outcomes are possible under the current circumstances.
1) EURUSD is trading in wave C of a flat correction
2) EURUSD is trading in either wave b of 3 or wave 4 of an ending diagonal(ED).
Let us look at both these possibilities in detail :
Flat Correction:
If EURUSD is indeed trading in a flat correction then the best possible trade will be to buy closer to 1.1600/1.1550 looking for minimum target of 1.2250 which can extend till 1.2650.Pink lines shows the possible chart path in case of a flat correction.
Ending Diagonal:
If EURUSD is forming an ending diagonal then it should not trade below 1.1717 before hitting a high above 1.2095. EURUSD should trade inside the orange trend lines shown in the chart if wave 3 of ED is already complete, if EURUSD is forming wave b of 3 then we will have to redraw the trend lines.If EURUSD falls below 1.1717 before 1.2095 then this possibility can be ignored and the flat pattern will be the only structure that will be valid .Blue lines shows the possible chart path in case of ED.
Please note that these are views based on the my limited capabilities as an EW analyst and there are multiple ways to analyse the markets . Kindly do your own analysis before taking any decisions.
Good Luck Traders!!!
1) EURUSD is trading in wave C of a flat correction
2) EURUSD is trading in either wave b of 3 or wave 4 of an ending diagonal(ED).
Let us look at both these possibilities in detail :
Flat Correction:
If EURUSD is indeed trading in a flat correction then the best possible trade will be to buy closer to 1.1600/1.1550 looking for minimum target of 1.2250 which can extend till 1.2650.Pink lines shows the possible chart path in case of a flat correction.
Ending Diagonal:
If EURUSD is forming an ending diagonal then it should not trade below 1.1717 before hitting a high above 1.2095. EURUSD should trade inside the orange trend lines shown in the chart if wave 3 of ED is already complete, if EURUSD is forming wave b of 3 then we will have to redraw the trend lines.If EURUSD falls below 1.1717 before 1.2095 then this possibility can be ignored and the flat pattern will be the only structure that will be valid .Blue lines shows the possible chart path in case of ED.
Please note that these are views based on the my limited capabilities as an EW analyst and there are multiple ways to analyse the markets . Kindly do your own analysis before taking any decisions.
Good Luck Traders!!!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.