Eurusd About To Complete A Triangle

Amidst uncertainty concerning the greek bailout, the Euro which is perhaps destined for more dip does not yet look set for it. The rally from 1.045 can be said to be corrective. The questions are: what corrective pattern and when will it end to give way for the bears to take over in a move expected to break below the 1.045 mark.

I have for a long time forecast a double zigzag correction to 1.78-85 price level and price has not fulfilled it neither has it invalidated it.

The last update was on 22nd July with an article titled Watch out for Eurusd .

 

 

 

 

Along with the chart above, I wrote :

"The chart above shows two corrective waves- [w] and [x]. Wave [w] is a corrective zigzag while [w] fits a flat. 

The wave c of [x] is emerging as an ending diagonal, a tradable pattern.

If price dips a bit from the current position ( to complete the last leg of the diagonal) and break above the emerging diagonal's wave iv, we should be seeing Eurusd advancing."

 

Price did dip a bit and advanced but the move was not a typical 'after-diagonal' move and price , not getting to wave ii of the diagonal, dipped further to form what looked like another emerging pattern.

The [X] leg of the prospective double zigzag is about to complete a triangle (an elliot wave corrective pattern) and a break above the B-D triangle line will validate a move to advance Eurusd to 1.16-1.18.

 

Price is expected to complete the last leg of the triangle which should end at 1.081. A break below this level will invalidate the entire forecast.