New Long-Term Elliott Wave Count for the EUR/USD Currency Pair by Sid from ElliottWavePredictions.com. Click on the chart twice to enlarge.
After a few days away from the charts, I’ve come back to them with “new eyes”. As many of you know, I’ve been thinking that the early May high in the stock market and the Euro were not THE top, and have been sporting an ending diagonal scenario in the US Dollar Index, with the expectation of a trend change, but only after one last lower low, but with the turn occuring before reaching 70.70. I also never cared for the 1-2-1-2-1-2 death-nail count for the Euro, and the accompanying immediate expectation for profound US Dollar strength, mainly because I’m still expecting one last rally in the US stock market (because the downward movement since May 2 counts best as corrective), not to mention, these types of 1-2-1-2-1-2 counts have been wrong over and over again for months on end. Just like my expectation for the US stock market is for continued sideways chop for at least another decade, I needed a count for the Euro with similar expectations, but was experiencing somewhat of a mind-block in the development of same. Then, a few days off, and voila! The count had been right in front of me in the form of the US Dollar Index, but in inverse, and is depicted above . .
Please keep in mind that my alternate count still calls for immediate and aggressive wave-3 selling in the Euro, but the new main count (shown above) will only be invalidated with movement below the trendline connecting the extremes of blue waves 2 & 4. There are additional explanations and commentary on the chart itself. See you soon . .