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)

EUR-USD ELLIOTT WAVE COUNT ANALYSIS

The corrective process from the 1.4045 trend sequence low is progressing well. It has broken the previous high at 1.4250 and the downtrend and is holding a solid updrift. Indeed we are close to completing a 3 wave move with a C=A terminus of 1.4325 (using AB=CD harmonic pattern). However given the 8 day decline from 1.4965 that would look a little too small. In the daily perspective we are looking for a 4 day reaction to the 1.4390-1.4420 area. Thus we must allow for the almost completed 3 wave move to be only A of a larger correction. This leaves the risk marginally higher to 1.4325 before down in either a B wave or possibly trend. A B wave would probably hold 1.4120 for a rebound to the 1.4390-1.4420 target. A direct loss of 1.4045 would confirms the downtrend has resumed. Thus venturing short around 1.4325 should cover both options.

Chart extracted from Elliott Wave Analysis

Failing to pree on after breaks to new highs leaves the Euro vulnerable to a reversal to  1.4160 + possible lower. Over 1.4310 opens way to 1.44xx

Count Elliot Wave EURUSD should reach at least 1.5

This is EURUSD pair projection based on Elliott Wave analysis, the level 1.5140 should be reached before current rally pullback. This 1.5140 is also the target of FX strategist of MIGBANK. The screenshot was taken on 29 April and I have entered a LONG position at 1.4829. But 1.5000 is an important psychology level and I believe there are many pending Sell Limit Order ready here so I will put my Take Profit a bit lower: 1.4990, and will consider entering Long again around 1.48 - 1.4750 area afterward.

Currently there is no reliable software, tool, or indicator can count Elliott Wave precisely, everything is subjective. But there is one exception you can rely on, the above analysis is extracted automatically from Elliot Wave Analysis Counting Software.