3 Wave Correction (Up) in EURUSD
Since the EURUSD bottomed below 1.30 at the end of November, the market has corrected upward, but without any sense of a genuine bull move. For the moment it is possible to characterize the action as a 3 wave Elliott corrective move (A-B-C), with the B wave being irregular.
The A wave tops out on December 3rd at 1.3437. Then the irregular B wave begins, with an initial low at 1.3164 on December 9th, a counter move that tops out above the initial A top near 1.35 on Dec 14th, then a final low at 1.3055 on Dec 23rd.
Here is a look at some of the internal dynamics of that irregular B (in a chart made on Monday morning when the C wave was still ongoing):
The length of the c of B wave was almost almost exactly 1.618 times the length of the a of B wave. (In fact it was about exact as it could be--442 pips,versus the 441.7 pips called for in theory.)
In a chart also made Monday morning, a C wave was projected to end around the same level as the top of the initial A wave. Using the same dynamics as the B wave (although this time it was not irreguar)----c of C being 1.618 times the length of a of C)--projected an end to the 3 wave upward correction around 1.3437.
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The top yesterday proved to be 6 pips below that theoretical target.
Shown on a 4 hour chart from this morning:
