Here's an update on EURUSD. I am currently looking for a short entry. I believe the three-month correction is already over and more weakness in EUR will continue to develop in the coming couple of months. The target is 0.9941 - at least! I think the first subwave of the decline is already developing, but as usual there is a high chance of a deep correction, which should retrace a substantial part of the first impulse. So, I would refrain from entering short right now, but would watch for a completion of the corrective structure in subwave 2. Otherwise watch for the breakout of the lower boundary of the corrective channel.
Wave X was completed at 1,0950. Now begin Y wave. Buy on dips.
AndyM
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I'll just wait. I want to see what happens near 1.10, if I see a clear correction formed, then the decline is starting and I will re-enter. If I see the market going up, I'll just skip it - will wait for the reversal.
dchua1969
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now that EUR has gone down to 1.10 , does it mean it will rebound from here to hit your 1.13 (wave 2) before heading south once more to 0.9941?
it's incredible at the pace it is going.
kindly advise, thanks
AndyM
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The price has gone to the bottom of the corrective channel, still has a chance to rebound up, but given the dramatic drop I think the chances for a strong rebound are low. I opened my shorts, SL = 1.11, but this is very risky. I would watch for the correction around 1.10 complete, and would open on breakout to the low.
aibek
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I think rare WYZ is in place.
AndyM
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I think the whole setup of WXY in your chart is a flat correction, so a typical ABC. Note that Y in you chart relates to W as 1.618, and X stops right at 0.886 of W, so a classic setup of a flat correction. So, still an ABC to me, which can be marked W, followed by X.
aibek
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thanks, i am not that keen on EW, will watch your updates!
SLdeals
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I think Y wave not finished. We make first part of Y, small w. Now we forming x.
AndyM
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I agree - after publishing this chart, I did some research yesterday and today and analyzed correlations to other currencies - it does indeed seem that Y wave is not finished.
I expect the current small impulse to complete at 1.1050, then up to approx 1.15 or higher, and only then this will be finished.
Thanks for your comment!