Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com

Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Covered Topics: 1) how Friday's seemingly bullish move in the Euro is actually bearish, 2) What characterizes a low-risk, high reward trade setup, 3) A recent example in the EURUSD of an unusual pattern repeating itself immediately, but at one larger degree, exemplifying a fractal, and 4), How to set a Fibonacci target. http://ElliottWavePredictions.com

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[sid78692]

HI Sid don,t you think that this count was invalidated at wave C as wave c has subdivided in to 5 waves and not 3 waves as a diagonal triangle should subdivide into, i would rather think that it was a 3-3-5 flat for wave W and now working to words a 3-3-5 for wave X and expecting a new type of correction once it has finished.

[SidsCharts]

@sid78692 What "Wave C" are you referring to? If you are counting the wave I labeled as wave 3 black, which lasted from November 2009 to June 2010 as subdividing into 5 waves, I believe you are incorrect. It is quite clear to me that that wave subdivides into an ABC (blue) zigzag. My alternate count to the leading contracting diagonal scenario is that we may have seen a WXY so far, each wave a zigzag, with the W at the Oct 2008 low, the X at the Nov 2009 high, and the Y at the June 2010 low.

[SidsCharts]

My count isn't invalidated until wave 4 black is longer than wave 2 black. Also, Elliott Wave doesn't refer to trendlines with letter and number combinations like C-2. While the EWP book does say that leading contracting diagonals are rare, I see them pretty regularly. If my count is invalidated, my backup count is that the structure since the 2008 high is a W-X-Y, and that we are likely in another X now. Finally, a drop to a 10 yr low doesn't put us anywhere even close to an all time low

[aradioactivedonut]

Isn't this count invalidated since the price broke above the C-2 trendline? This sort of pattern has to include the origin of wave one if I remember correctly. Also, this pattern is very rare and has only been confirmed a few times. It would also imply that the price will eventually break bellow its ten year low. I don't think that is likely. It is probably WXY starting at your wave 3 with y becoming an expanded flat to complete wave 2 of an expanded third wave.