23 March, AtoZ Markets -Euro completed a deep-lying double zigzag corrective pattern. In the last update, we spotted a double zigzag pattern but price rallied stronger and hit a strong resistance. Patterns formed at this level often indicate an imminent corrections or reversals will tale place. The chart below was used in the last update.
EURUSD Elliott wave analysis, H1 (click to zoom)
The chart above shows that the rally from 1.0490 looks corrective. the emerging pattern is a double zigzag. Wave Y is about completing and will be confirmed by a bearish breakout. Price is presently at a strong mathematical reversal zone. The double zigzag should complete and be confirmed below 1.08 or slightly above it. The rally will persist if price breaks above 1.08 in high momentum.
The chart above shows a double zigzag correction after an impulse wave. Price was expected to be held below 1.08 and fall.There was a breakout below 1.0746 but the followed dip was shallow and moved sideways before continuing upside. Price broke above 1.08 and the double zigzag pattern was violated. This can happen. Patterns can be violated by price. With this violation, there is need to review the wave count from end of the triple zigzag that completed early February. The chart below shows the updated count.
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23 March EURUSD Elliott wave analysis: another double zigzag pattern?
EURUSD Elliott wave analysis, H2 (click to zoom)
The chart above labelled the first dip from the end of the triple zigzag as a leading diagonal pattern. The recent rally looks corrective and signal the end of the 2nd wave of a long term bearish impulse wave. We may see price fall wildly in the coming weeks if 1.083 is not broken upside. A significant break below the trendline will be vital for the bearish run. A break above 1.083 will invalidate any bearish expectation and change our long term bias bullish.
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