The Euro taking a break

Hi Traders,

The EURUSD (now at 1.226) might be staging a temporary top followed by a  retracement to the 1.19 area where it should resume the rally to 1.26 or higher. 

ELLIOTT WAVES

The monthly chart reveals that the Euro is unfolding "major wave 4" to 1.26 and maybe even to 1.30. Note the theoretical final target at 1.3016

The weekly chart shows that "major wave 4" is supposed to be made of three waves up (in black).

The daily chart reveals that the target of the ongoing retracement down is the area 1.202-1.186. As you can see, the Euro is performing a retracement by means of minor wave 4.

This is also clear in the 4-hours chart and in the 1-hour chart which both show five waves up and the beginning of the retracement.

Monthly chart: click the chart to enlarge

Weekly chart: click the chart to enlarge

Daily chart: click the chart to enlarge

4-hours chart: click the chart to enlarge

1-hour chart: click the chart to enlarge

The Aussie Dilemma

Hi Traders,

The Aussie (now at 0.7956) might top in the area 0.7940-0.7996. This top should trigger a retracement to 0.78-0.77.  BTW, what is expected afterward might be debatable. Let's see why.

ELLIOTT WAVES

On the right-hand side of the monthly and weekly charts there is an a-b-c-d followed by 4 waves in green. Apparently, the AUDUSD is trying to unfold wave 5 (in green) which would complete the a-b-c-d-e as well as wave 4 (in red).

This means that, after the retracement above mentioned, the Aussie could actually resume the uptrend to 0.85-0.86 or even to the 0.92-0.95 area.

The daily chart displays the four legs (in blue) and the target at 0.7940-0.7996. It also shows that wave 4 is made of 7 smaller waves, which is equivalent to a 3 waves system. This confirms that this is a typical wave 4.

Consequently, after the top at 0.7940-0.7996 and the subsequent retracement to 0.78-0.77, there could be a rally to 0.85-0.86 or even to the 0.92-0.95 area.


Monthly chart, click to enlarge

Weekly chart, click to enlarge

Daily chart, click to enlarge

4-hours chart, click to enlarge