The five weeks bullish trend of this pair has been under correction since Feb.18 By the wave theory the correction looks and fits the characteristic of a double Zig Zag or WXY correction, but I can't label it as a complete. Here if looking for a long position the best option is to wait for the price to go up and break 0.90692 and then think of a way according to the methodology of each trader how to enter and exit the market. if you like my idea do not hesitate to press thumb up button. Thank you.
Single Flat 3/3/5 formation, sorry but this is my concern: I first thought this is a normal 4th wave pull back of the impulse 5th but I am not so sure now because the degree of this pull back is not shallow (38%) as typical 4th wave is. At any rate, I think the chance of EG making new High is questionable.
@LindoZigZag, Thank you for your reply and the information. I appreciate your time.
ChrisHoang
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I think this correction is just a single Zigzag where you labelled "X" is the beginning of the larger 5 wave impulse C down. I think we are currently at the 3rd wave of that C. I saw the RSI divergence signal you mentioned so I guess the 4th is about to come. Thank you for posting, I do appreciate your time. Any way, EG should not dip too low before moves back up, otherwise, we may run in to a double top (truncate 5th) which fits the current ranging environment of EG of the larger time frame.