Being a Euro-based investor, I must follow the EURUSD currency. I usually do not mention it in the blog as the main focus is the S&P 500 index, but today it seems interesting to observe the chart with a special Elliott’s Soup release.
I’m looking long term, so the weekly bars may be opportune: the first thing I read is that the market is very technical – and I’m not surprised(*). Consequently, the analysis is sufficiently clear: after the conclusion of the impulsive 3 (finished with a fitty dissonance in the oscillator), the 4 needs to show an a-b-c targeting 1.09/1.15. Probably, 1.09/1.11 is a more detailed area for the end of the 4.
Then, a crash is expected. The EURUSD is targeting at the moment a waving 0.93, 0.91 and 0.89: what may happen below those levels is hard to say, at least for me now.
As the current Elliot’s Wave is completed, a new pattern will emerge.
(*) The EURUSD reflects the relationship between USA and European Union. The chart shows an evident change in the relative volatility after the beginning of 2020. Also, the wave becomes fully impulsive at the beginning of 2022. Geopolitical events (however you may interpret them) are in synchro almost perfectly, meaning that the big players are in total control, taking their profits from the movements of the herd.