EURJPY
EURCHF
EURGBP
Commentary - We wrote last week that “a larger correction (flat or triangle) may be unfolding from the 7/13 high of 168.94.” The 3 wave movements keep focus on the large correction scenario. To this point, 2 large 3 wave movements are visible, the 3 wave decline from 168.94-149.25 and the 3 wave rally from 149.25-167.73. Near term, a small 4th wave correction is likely unfolding and resistance should be strong near 162.25. If the decline from 167.73 does finish waves 4 and 5, then we will use the expected corrective rally to get bearish against 167.73.
Strategy – Flat
Commentary – Last week we wrote that “the rally to 1.6827 may have completed wave 3 within the 5 wave bull cycle from1.6175 (wave 3 began at 1.6333). A corrective decline in wave 4 should end in the 38.2%-23.6% retrace zone of wave 3, which is 1.6638/1.6710. A rally to a new high is then expected to complete a larger advance.” The EURCHF topped at 1.6827 and did correct lower in what we are viewing as wave 4. A rally is expected to exceed 1.6827 in order to complete the advance from 1.6175.
Strategy – Flat
Commentary – Near term, the EURGBP is working its way higher in a 5th wave within the 5 wave bull cycle from .6679. A push through .7027 would satisfy minimum expectations for completion of wave 5 from .6893. Once 5 waves are complete, a correction is expected to unfold. Longer term, we maintain that the EURGBP is headed to .7200.
Strategy – Remain bullish, against .6893, target .7027