EURUSD EW analysis - flat correction underway

21 Feb 2015

The EURUSD bounced non impulsively in abc formation from the lows of 1.109. After it re-approached lows at 62% of the abc I published a possible triangle formation which has been invalidated through further non impulsive behaviour. This therefore must be considered to be a wave B. Now over uncertainty over the Greek bailout solution over the weekend, an upwards impulse has formed at the base of the B wave correction. This is likely the beginning of a wave c (i of c) and IV that will complete a typical 3-3-5 flat correction towards 1.16 before the descent to ultimate lows begin. I believe that moderately positive news will push the EURUSD pair much higher in third wave formation on Monday when the market opens, and the following week may be enduringly positive. This flat correction playing out as expected means more to us than a long scalp, It also validates a powerful short from higher levels.