Tamer Elzein
Independent Analyst
The euro showed more weakness this week, moving in an impulsive manner towards the downside, and forming a new 8-month low.
Price has now reached a cluster of support levels, including several channel lines, a historical low, and Fibonacci levels.
We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.
6-Hour Main Count
- Invalidation Point: 1.3701
- Confirmation Point: -
- Upwards Target : 1.3383 – 1.3505
- Wave number: Minute ii
- Wave structure: Corrective
- Wave pattern: Zigzag, Flat, or Combination
Elliott Wave chart analysis for the EURUSD for 25th August, 2014. Please click on the charts below to enlarge.
Main 6-Hour Wave Count
The bigger picture sees the euro moving downwards in intermediate wave (A), which is most likely forming an impulse labeled minor waves 1 through 5.
Minor wave 3 is unfolding as an impulse labeled minute wave i though v.
Within it, minute wave i formed an impulse labeled minuette waves (i) through (v), and it’s now very near completion.
This count expects the euro to start moving towards the upside in minute wave ii.
Neither the MACD indicator nor candlestick analysis are showing a clear signal at this point.
At 1.3383 minute wave ii would retrace 38.2% the length of minute wave i, then at 1.3505 it would retrace 61.8% of its length.
This wave count is invalidated by movement above 1.3701 as minute wave ii may not move beyond the start of minute wave i.
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