Elliot Waves

Let’s end the week with a daily view of the most heavily traded currency pair in the world. The EURUSD has bounced from the trendline that is drawn off of April and September lows (another potential channel line is the lower line, in blue). I do expect a break and sharp decline, as per the wave count, sentiment readings, and recent divergent/overbought momentum readings. I indicated yesterday that “my focus is on resistance in the No change from yesterday – “The decline from 1.7050 could be a series of 1st and 2nd waves, part of a leading diagonal, or a 3 wave correction. Price action since 1.6750 could also be in the mold of a triangle. There are many possible counts right now but most point lower with 1.6700 intact. Be particularly cautious here though as the GBPUSD rally has accelerated (albeit through a very short term resistance line) and 1.6700 is in imminent danger.”