EUR/USD Labyrinth, Act 3
| Oct 26, 2018 08:16AM ET
It's been a long run towards the 1.1300 again. The daily chart now clearly reveals the 5 waves of the 5-3 EW. The start of the current impulse wave, at 1.1816, was less than 40 pips away from the start of the 2nd impulse wave. It could stop anywhere and so make a truncation, but a stop in the 1.1270-1.1300 area is highly possible.
The upcoming ABC should go as high as ~1.2000 sometime at the beginning of January 2019. It might, however, spend a few weeks in the 1.1500-1.1800 area before leaving it for good. The chart below reveals a possible scenario but fundamentals will have a big part to play.
The most excited are the bulls who patiently wait to have their pending orders filled. Plenty of technical cues support their aspirations: double bottom, bullish harmonic pattern, RSI(14) at 34 (0/100), Stoch oversold, the completion of the last impulse wave. The rally, therefore, could start anytime but no later than November 7th, 2018.
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