Source: thewavetrading: EURUSD: Follow Up of the Short Term EWP | The wave trading

EURUSD: Follow Up of the Short Term EWP | The wave trading

EURUSD: FOLLOW UP OF THE SHORT TERM EWP

In my opinion the internal structure of the rebound from the July 24 low is clearly corrective. If you try to count it as impulsive it would be like looking for a needle in a haystack.

Since everything within what can be counted as a 3-wave up leg is corrective maybe price from the November 13 low is unfolding an Ending Diagonal wave (C)

Both up legs of this potential wedge are corrective and so far the assumed wave (III) is shorter than the wave (I). If this scenario is correct then I need starting from Monday a pullback wave (IV) that has to overlap below 1.3308

In addition the assumed pullback wave (IV) has to be shorter then the wave (II).

If this scenario plays out the final wave (V) up will complete a Zig Zag from the July 24 low.

Probably if the positive correlation with SPX is maintained this top will most likely be the wave (A) of a larger Zig Zag  or the wave (W) of a Double Zig Zag, hence I expect that the pullback once/if the ED is complete should bottom in the area of the 200 dma = 1.2791

This scenario would be alligned with the Ending Diagonal of SPX and the Triangle of NDX discussed in today´s Weekly Technical Analysis.

Regarding the big picture I maintain the 2 options discussed in my last Update of the Long Term Count posted on September 9:

1. Triangle :

2. Double Zig Zag:

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