EURUSD 240m 5-29-13

Elliott Wave Analysis of the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.

Up from the May 17 low, wave w (pink) was a corrective “three”, and subsequent downward movement to green “a” did not reach a 90% retracement. The Euro therefore appears to be extending wave 2 blue as a pink wxy combination, with the x wave potentially forming a triangle. At this juncture, I think wave 2 blue is most likely end somewhere between the .5 and .618 retracement of wave 1 blue. That target zone is from 1.3020 to 1.3073. If the triangle scenario plays out, I’ll be able to measure the triangle, and deduce a specific thrust target for the end of pink Y.

If price continues higher with little interruption, the alternate count is more likely. Up from the pink alt:x label, pink alt:y won’t be complete until a green abc zigzag finishes all subdivisions. Both the main and alternate counts call for aggressive downward movement to resume after the pink wave “y” concludes. Blue 2 invalidation is at 1.32438.

Sid
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