The rally for EURUSD has been spectacular.
The uptrend is nearing its point of exhaustion, if it already hasn't seen the top.
We've anticipated a large uptrend since the trend change in January.
There are 2 colored labels on the chart, red and black labels.
RED AND BLACK WAVE COUNTS
The RED labels imply a high in wave 1 and EURUSD is declining in wave 2. Wave 2 likely stretches down to 1.07-1.12 and may take 1 to 3 months to develop.
The market geometry within this rally fit really well on the red. However, the lack of RSI divergence at the end of wave 1 is a little worrisome. Typically, we'll see wave ((v)) diverge on RSI relative to the high of wave ((iii)).
The black is a slight variation of the red. BLACK suggests the recent high wave wave ((iii)). A little more dip and correction is wave ((iv)). Then, one more rally in ((v)) to finalize the larger degree wave 1.
Either way, the trends in EURUSD are skewing to the downside.
Since wave 2 is a corrective wave, it'll be a difficult one to trade. If you want to trade USD strength, consider buying USDCAD or shorting AUDUSD.
From lower levels (1.07-1.12) in about 1-3 months, a bullish setup in EURUSD and GBPUSD are likely to emerge for another powerful run.
The uptrend is nearing its point of exhaustion, if it already hasn't seen the top.
We've anticipated a large uptrend since the trend change in January.
There are 2 colored labels on the chart, red and black labels.
RED AND BLACK WAVE COUNTS
The RED labels imply a high in wave 1 and EURUSD is declining in wave 2. Wave 2 likely stretches down to 1.07-1.12 and may take 1 to 3 months to develop.
The market geometry within this rally fit really well on the red. However, the lack of RSI divergence at the end of wave 1 is a little worrisome. Typically, we'll see wave ((v)) diverge on RSI relative to the high of wave ((iii)).
The black is a slight variation of the red. BLACK suggests the recent high wave wave ((iii)). A little more dip and correction is wave ((iv)). Then, one more rally in ((v)) to finalize the larger degree wave 1.
Either way, the trends in EURUSD are skewing to the downside.
Since wave 2 is a corrective wave, it'll be a difficult one to trade. If you want to trade USD strength, consider buying USDCAD or shorting AUDUSD.
From lower levels (1.07-1.12) in about 1-3 months, a bullish setup in EURUSD and GBPUSD are likely to emerge for another powerful run.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Test your Elliott Wave readiness.
Free assessment + bonus training videos customized to your score:
qwiz.seethewaves.com/ewreadiness/p/tv1
Free assessment + bonus training videos customized to your score:
qwiz.seethewaves.com/ewreadiness/p/tv1
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.