Daily Elliott Wave Strategy EURUSD - Downside Nesting or Larger Consol

Following the strong 3 wave decline from the 1.4940 peak earlier in the year or A wave on the Weekly Perspective, the Euro is settling into a larger B wave consolidation pattern in the 1.3145 to 1.4245 region. With the strong counter trend upside reaction to 1.4245 in a 3 wave format our favored view is for a contracting triangle pattern. Typically the B wave in this formation offers a deep retracement and in this case we have seen a 90 percent pullback to 1.3210. As the minor C wave in this drop has taken a diagonal price pattern, we remain bullish for an upside break of the 1.3610 pivot to allow a C wave swing to the start of the formation at 1.3865 that coincides with a 61.8 percent of the A wave target of 1.3900. This would still further contracting 1.3260 to 1.3900 range trade before the eventual downside break to the weekly 1.2925 target and possible even a test of 1.2625 monthly up channel support. Only a direct loss of 1.3210 would negate the consolidation theory and direct drop to the 1.2925 target.(see below)

Copyright 2008 All Rights Reserved Revolution Two Church theme by Brian Gardner. Converted into Blogger Template by Bloganol