I had barely written that I expect a deeper correction and EUR/USD proved me wrong without a doubt. The pair broke out above 1.1600 with ease and has risen with 180 pips today alone, reaching 1.1658 at the beginning of the American session.
This development is forcing me to reassess my expectations.
The pair’s rally is starting to resemble an impulse to the upside, which is very close to reaching 1.17137 (the high from 23rd August 2015).
If the pair breaks out above that level too that supposition – that the development resembles an impulse – could prove true.
In this case this impulse could be Wave A to the upside.
If that supposition is correct, then there should not be a deep correction, because it is possible for Wave 3 (blue) of Wave A to be developing, and Wave A has the structure of an impulse according to the Elliott Wave Theory.
All this means that in the following years we could see a serious rally of the European currency.
Let's see whether it will break out above 1.1700.
ReplyDeleteVery helpful analysis, thank you for sharing!
ReplyDeleteGreat analysis.
ReplyDeleteThe pair is very bullish now.
ReplyDeleteGood insight.
ReplyDeleteGreat post! I fully agree with your view.
ReplyDelete