• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

EURUSD: Review of The Long Term Elliott Wave Pattern

Brief update

I maintain the two potential patterns discussed the last time on October 19, 2013:

  1. Double Zig Zag Option: From the July 2012 low price is unfolding the second wave (B) of a Double Zig Zag, which began at the July 2008 high. The theoretical target of the assumed wave (B) could be located in the range 1.4053 - 1.4424 Once the wave (B) is in place it will be followed by the last wave (Y) down that could have a similar size of the preceding wave (A) = - 0.29 €.

EUR Monthly Chart
Larger Image

  1. Triangle: From the October 2008 low price is forming a Triangle wave (B). Instead of the second wave (B) price is now unfolding the wave (E) of the Triangle. We can use the same price levels discussed above for the target of the wave (E). Once the wave (B) is in place it will be followed by a "thrust" wave (C) down which has a measured length of - 0.3185 € (The Eur would lose the parity).

EUR Monthly Triangle Chart
Larger Image

Elliott Wave wise the issue is to establish the correct pattern of the advance from the July 2012, which is clearly corrective, but this is a difficult task.

We can make the case that price is unfolding a Triple Zig Zag.

We could agree that the first Double Zig Zag was completed at the February 2013 high and the third Zig Zag began at the July 2013 low. If this idea is correct the third wave (A) was established at the October 2013 high. Now we have to establish where is the correct spot for the third wave (B).

EUR Weekly Triple Zig Zag Chart
Larger Image

Possible Options:

1. Triangle: Price formed a Triangle wave (B) which was completed on February 27. The following thrust can be counted as impulsive but it could be the first wave of a larger impulsive sequence.

EUR Daily Triangle Chart
Larger Image

2. Running Flat: The wave (B) was established at the February 3 higher low with a Running Flat. If this count is correct probably a wave (IV) pullback is underway which will be followed by the last wave (V) up.

EUR Daily Running Flat Chart
Larger Image

3. Ending Diagonal: From the November 7 low price is forming an Ending Diagonal wave (Z). If this is the case we are now in the wave (III).

EUR Daily Ending Triangle Chart
Larger Image

With more price information I hope I will be able to find the right path.

 

Back to homepage

Leave a comment

Leave a comment