EURUSD Wave 3 UP to Begin Next LONG 240 mins AND MONTHLY CHART
EURO
EURUSD
expanded FLAT Correction of Wave 2 should be now complete with an ending diagonal 5 waves (5th wave this morning upon release of US NFP).
Wave 1 was a LEADING DIAGONAL.
Retest of descending Long-term Trend Line today and rise to come into wave 3 next.
Wave 3 should rise minimum to 1.618 projection of Wave 1 from today's low (end of Wave 2). Could even rise to 2.618 projection. Both these targets (minimum and maximum) coincide with important zones of resistance going back to October 2018 and September 2018.
To better understand what is happening on the short-term chart it is always best to start by examining long-term Monthly (and weekly) charts.
The Monthly chart explains why the directional bias on the Euro should now be on the LONG side and why a coming wave 3 is the preferred prediction on the 240 min short-term chart.
I have shown a Monthly chart of the Euro beneath the 240 min and indicated where the ultimate target will be many months from now. This target is a confluence of 4 things and thus an extremely powerful pull to take Euro there :
1. Projection of 1:1 of C to A on the Monthly.
2. Upper end of Ascending Channel on the Monthly.
3. 50% Retracement of the drop in the Euro from July 2008 to January 2017.
4. Rough correspondence with huge zone of congestion (resistance) going back all the way from 2004 to 2014.
EURUSD
expanded FLAT Correction of Wave 2 should be now complete with an ending diagonal 5 waves (5th wave this morning upon release of US NFP). Wave 1 was a LEADING DIAGONAL.
Retest of descending Long-term Trend Line today and rise to come into wave 3 next.
Wave 3 should rise minimum to 1.618 projection of Wave 1 from today's low (end of Wave 2). Could even rise to 2.618 projection. Both these targets (minimum and maximum) coincide with important zones of resistance going back to October 2018 and September 2018.
To better understand what is happening on the short-term chart it is always best to start by examining long-term Monthly (and weekly) charts.
The Monthly chart explains why the directional bias on the Euro should now be on the LONG side and why a coming wave 3 is the preferred prediction on the 240 min short-term chart.
I have shown a Monthly chart of the Euro beneath the 240 min and indicated where the ultimate target will be many months from now. This target is a confluence of 4 things and thus an extremely powerful pull to take Euro there :
1. Projection of 1:1 of C to A on the Monthly.
2. Upper end of Ascending Channel on the Monthly.
3. 50% Retracement of the drop in the Euro from July 2008 to January 2017.
4. Rough correspondence with huge zone of congestion (resistance) going back all the way from 2004 to 2014.
