ANALYSIS: EURUSD: All Roads Lead To A Wave 3
Did that headline get you excited? Who doesn't want to catch a wave 3, right? So my thorough analysis says a wave 3 is the next move. But when and where will it start? Or has it already started? Can you still catch it if it has? If so, where would it be best to catch it? All these questions will be answered....in due time! So let's get started with why I'm thinking wave 3.
I did post about his possibility last week (see Related Ideas: "EURUSD: Did Wave C Just Start? Bull Bat TP1+TP2 Hit (+222 pips)". But in doing my weekend re-analysis, I throw everything from last week away and start from scratch and see if I come to the same conclusions. Here's what I got.....
SUMMARY OF MAIN CHART ABOVE
The chart I posted above is the 4Hr TF chart. The chart is simple. Two patterns. One is a bullish Gartley and the other a bearish butterfly. Both end at/near the lower and upper trend lines respectively. By my wave count, it's possible that we are already in a wave 3 moving up towards filling the bearish butterfly at the top trend line. But it is also possible that the wave 2 has not yet finished and prices will move towards the lower trend line more and fill the bullish Gartley before starting on the wave 3 up after testing the lower trend line. Prices are at a decision point (as of the time of this posting) as to which way to go. It's simple. If it goes down and breaks the B point of the Gartley, then wave 2 is not finished and the Gartley will get filled. Prices then will start on wave 3. If prices either move down and DOES NOT break the B point of the Gartley and then start moving up again OR prices just move up from where it is now, then wave 3 has already started and now is a good time to look for opportunities on small retracements to get in on it. Why the B point is so important? Because if wave 3 has already started, then point B is the end of the wave 2. If prices go lower than that, then wave 2 is not done. OK, so how did I come to the conclusion that there is a wave 3 coming here and that prices are not just poised to shoot down in starting another impulse wave down?
OVERVIEW - MONTHLY CHART
There is A LOT going on here! Mostly self-explanatory but overall...BEARISH! So if I am overall bearish on this pair, why am I saying there is a wave 3 UP coming? Well, remember this is a MONTHLY chart and everything that is happening now is all within the context of the MONTHLY moves.
WEEKLY CHART - ZOOMING IN ON THE CURRENT PRICE ACTION
DAILY CHARTS - HERE'S WHERE IT GETS INTERESTING: 3 POSSIBLE SCENARIOS
So below are 3 charts on the DAILY TF that show 3 possible scenarios that I think have the most likelihood of happening. Of course I am not saying any of these WILL happen and that there are many other ways that this correction could still unfold and also that there is a possibility that the correction is over and prices are poised to move lower from here as well. But these are just MY thoughts are the most likely scenarios. Choose whichever you think. But in ALL 3 scenarios, the next move is UP in a wave 3. And that is why I am so confident that this is a very good opportunity to catch a wave 3 movement!
CONITNUED BELOW IN COMMENTS SECTION DUE TO POSTING LIMITS
I did post about his possibility last week (see Related Ideas: "EURUSD: Did Wave C Just Start? Bull Bat TP1+TP2 Hit (+222 pips)". But in doing my weekend re-analysis, I throw everything from last week away and start from scratch and see if I come to the same conclusions. Here's what I got.....
SUMMARY OF MAIN CHART ABOVE
The chart I posted above is the 4Hr TF chart. The chart is simple. Two patterns. One is a bullish Gartley and the other a bearish butterfly. Both end at/near the lower and upper trend lines respectively. By my wave count, it's possible that we are already in a wave 3 moving up towards filling the bearish butterfly at the top trend line. But it is also possible that the wave 2 has not yet finished and prices will move towards the lower trend line more and fill the bullish Gartley before starting on the wave 3 up after testing the lower trend line. Prices are at a decision point (as of the time of this posting) as to which way to go. It's simple. If it goes down and breaks the B point of the Gartley, then wave 2 is not finished and the Gartley will get filled. Prices then will start on wave 3. If prices either move down and DOES NOT break the B point of the Gartley and then start moving up again OR prices just move up from where it is now, then wave 3 has already started and now is a good time to look for opportunities on small retracements to get in on it. Why the B point is so important? Because if wave 3 has already started, then point B is the end of the wave 2. If prices go lower than that, then wave 2 is not done. OK, so how did I come to the conclusion that there is a wave 3 coming here and that prices are not just poised to shoot down in starting another impulse wave down?
OVERVIEW - MONTHLY CHART
There is A LOT going on here! Mostly self-explanatory but overall...BEARISH! So if I am overall bearish on this pair, why am I saying there is a wave 3 UP coming? Well, remember this is a MONTHLY chart and everything that is happening now is all within the context of the MONTHLY moves.
WEEKLY CHART - ZOOMING IN ON THE CURRENT PRICE ACTION
DAILY CHARTS - HERE'S WHERE IT GETS INTERESTING: 3 POSSIBLE SCENARIOS
So below are 3 charts on the DAILY TF that show 3 possible scenarios that I think have the most likelihood of happening. Of course I am not saying any of these WILL happen and that there are many other ways that this correction could still unfold and also that there is a possibility that the correction is over and prices are poised to move lower from here as well. But these are just MY thoughts are the most likely scenarios. Choose whichever you think. But in ALL 3 scenarios, the next move is UP in a wave 3. And that is why I am so confident that this is a very good opportunity to catch a wave 3 movement!
CONITNUED BELOW IN COMMENTS SECTION DUE TO POSTING LIMITS
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Twitter: @andrewefxselect
Website: efxselect.com
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