Wednesday, January 24, 2018

EUR/USD Is Forming A Typical Elliott Wave Theory Impulse

I have marked the possible waves and sub-waves of the impulse to the upside in red and blue and if my assessment is correct at the moment the pair should be forming the third (blue) sub-wave of the fifth wave (in red).

Of course, this is an assessment of the W1 time frame, which means that the upward trend should continue developing over the course of weeks or even months.

At the moment it is difficult to ascertain which scenario the EUR will follow as it moves north, only the market can decide that. In my opinion, the rally without a significant correction could continue to 1.2450 - 1.2500 and above which is still within the strong resistance zone (marked in red).