FX:EURUSD   Euro / U.S. Dollar
In my last chart I suggested that a possible ending diagonal might have form a low above 1.08350 which failed hence the flat correction of 3-3-5 in now ruled out.

However the overall larger time frame picture is not changed much in that since the May high price action is correcting the move of the March low and is not a resumption of bearish cycle. The main reason for this view that that the initial decline of May high is clearly a zigzag (ending at 1.0830) and not an impulsive 5 wave decline.

Therefore this suggest that once the correction is over, there will be a follow through of the move higher.

Having said that there are still 2 possibilities, both expected to resolve to the upside:

1. The we have double zigzag , the 1st ending in May (highlighted in chart) and upon a completion of rally high in June, we have now declined in what looks like double zigzag .
2. The second possibility is that we have more side way correction in the form of contracting triangle (abcde 3-3-3-3-3 configuration). If this is in play then still a rally towards the upper range of the triangle should develop.

Here are the technical summary:
1. Since May high, we appear to have double zigzag correction which is near completion.
2. We have retraced 61.8% Fib of the entire rise of the March low and approaching 66.67% (2/3rd Gann percentage) and 78.6% Fib retracement
3. Potential bullish RSI divergence.
4. In the proximity of the previous structure support .
5. If the Fib time symmetry holds then the anticipated low due in this time window.

Invalidation level to note is 1.07 (only for review to as new low below 1.06 would not necessarily alter the picture)

If the above plays out then the upside is anticipated to be either large wave 3 or C. AB=CD would give us approx target of around 1.18 or higher.

In case of triangle as second scenario, the upper range of would be around 1.13.

In both of the above, the nature of the rise will give further clues about which of the two possibilities is developing.

Warning: This is my interpretation of price action using TA approach that I consider helps me most but could be completely wrong. Therefore as always, do your own analysis for your trade requirement and ignore my views.

For those who appreciates my analysis, select to follow me and the chart for notification of future updates. Indicate you like my analysis by thumbs up, comments and sharing it with others. If you have an alternative idea then please be constructive and share for all to learn from.

Thank you for taking the time to read my analysis.

UPDATE: We appear to have formed the anticipated low, however, it is lacking the impulsive 5 wave structure. Therefore, it could be developing second scenario that of contracting triangle. We might have the high for the week and retrace for the remainder.
I think so now as well.
DanV IvanLabrie
The anticipated retrace could help clarify.
UPDATE: wave counts adjusted to take in to account the price decline from 7th July now looks more like and ending diagonal with clear RSI divergence. If correct then we could have a bullish week.
tracking this very closely, you think we could have bottomed already? I'm starting to wonder if that's the case
DanV G_Man
Possibly it has. But keep in mind that the move up at present could either be towards the top of the triangle range or new bullish move higher.

Further price action would help clarify.
yep, we shall see, cheers
Good idea....ABC correction now after a possible 12345 Elliot ? Greetz....
Your analysis seems very convincing. I wonder if the euro reached its bottom. according to the weekly chart and fundamental analysis, it is possible that the numbers can turn the currency pair. what do you think? Thank you for your great contribution :)
DanV MikaGlogy
Thank you for your comment.

Sometimes, when technicals suggest a possible turn, it is not always quite obvious as to what might act as a catalyst. It could be data numbers or political development. Yet at other times it only become known after the event.

So whilst looking for evidence of the turn on chart best to keep an open mind and caution.
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