When a significant target is reached one should step back and look at the bigger picture again. Elliott wave analysis of EUR/USD suggests that the decline from 1.5144 finished its first wave at 1.4216. The second wave retraced 38.2% only (suggesting that the next sell off could be a lengthy one). The third wave travelled from 1.4582 to 1.3432, covering a distance that was exactly 1.236 times wave 1. Clearly, the third wave did not extend. That meant the fifth wave has a higher chance of becoming an extended wave, and this is what is happening. (The fourth wave went from 1.3432 to 1.3817, covering a distance equal to the 2nd wave). With this background, you should now be able to understand how I am currently inclined to label the extending fifth wave. If you like this work, share it with your friends and they will thank you for that.
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Elliott Wave update on EUR/USD 6May2010
By Ramki5 Comments1 Min Read
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a novice question – your medium target mentioned as 1.17 – is it PINK 3 or PINK 5. if it is PINK 3, then what would be PINK 5. and can GREEN 4 – go as high as 1.32? and do these generally have time frames?
Hi Arvind, The M/T target of sub 1.1700 is the 5th wave target. Notice the violet ‘4’ at 1.3817. So when we complete the 5 waves (marked in red) that will coincide with the Violet 5. We are still within the third Red wave. I am color coding the minor waves just to demonstrate that each leg of the impulse wave has its own subdivisions of 5 waves.
Brilliant call on euro as always, was spot on and the timing was absolutely superb. will be very keen to see your post now that we have tested 1.2582 (almost at the point of writing this)
you are the best!!!!!!
Hello, regarding the iv wave…could it come higher then 1.29? Maybe just shy of 1.32, as the recent dump move was extreme and very agressive so with increased volatility could we see such a bounce?
Thank you for your time,