Euro Dollar – Falling 5 waves & an awaited upward correction

The Euro broke the support 1.4850 and successfully reached the first target 1.4760, stopping just 5 pips below it, and bouncing back more than 130 pips. We can see a very clear set of 5 waves falling from 1.5139 (as illustrated on the attached chart), that match all of Elliott waves rules. And if our wave count is correct, that means 2 things: first the first phase of the falling trend from 1.5139 is over, and that calls for an upward correction.

And the second is that after that upward correction that matches the falling move, the falling trend will resume to new lows below 1.4755! Short-term support is Fibonacci 61.8% at 1.4806, and if broken the odds of falling below yesterday’s low will be enormous. Our targets for such a drop are 1.4724 & 1.4649. Whereas the resistance is at 1.4844, and breaking it would mean launching an upward correction that ideally targets 1.4947 & 1.4992.

Support:

• 1.4806: Fibonacci 61.8% for the short-term.

• 1.4724: Fibonacci 38.2% for the whole rise from 1.4045.

• 1.4649: Oct 7th low.

Resistance:

• 1.4896: intraday resistance.

• 1.4947: Fibonacci 50% for the drop from 1.5139

• 1.4992: Fibonacci 61.8% for the drop from 1.5139