The last week was a week with massive and a trading range of nearly 500 pips (L1.05668 to H1.10345).
Nevertheless I still believe that we will see a strong impulse move to the north. EURUSD reached the 1.10 level but couldn't hold it.
How can I come up with this idea?
You see the wave (1) which started in the end of 2000 and finished in 2008. Now you can see that we are in a correction since 2008 and a really big triangle as wave (b).
At the expected wave (c) (which also completes wave (2)) we have multiple support zones as outlined in the chart.
Now let's take a look at the bigger picture:
On this chart you can see the EURUSD since 1972 forming a (made up of 5 waves, which contain 3 subwaves).
Now we take a look at the daily chart:
We have an extended wave 1 and a long wave 3. If we now measure the distance of wave 3 and add it to the termination point of wave 4 we get a target for wave 5.
Lastly we also check out the hourly chart:
This is a mess with a lot of overlaps, but you can still see how the internals fit the where I also believe that we will see a correction coming.
This sums up the weekly check-up. As you may already know, I'll post comments to keep you up-to-date.
Happy trading everyone!