EURUSD: Expect Big Moves, Both Down and Up

This is our favored longer term structure for the EURUSD.  We have wave iii of larger 3 of even larger III complete at 1.4967.  Therefore, wave iv (of 3) is unfolding now and should reach at least 1.4588 but possible 1.4353 (these are the 23.6% and 38.2% levels of 1.3360-1.4967).  We do expect a rally through 1.5000 and higher once this correction is complete.  Wave ii of the same degree took 4 weeks to play out so expect wave iv to last about 4 weeks as well.  This week is the second week of the correction so we expect a bottom to form somewhere in the middle of December.

This is a close up of the larger wave iv correction and one of the counts that we are tracking.  Wave A of the correction is a 3 wave decline and is complete at 1.4713.  Wave B was a sharp rally to 1.4858 and wave C of the correction is underway now.  Wave C may be unfolding as an impulse with wave iii of C underway right now.  Price is likely to test the 161.8% extension of 1.4858-1.4723/1.4785 at 1.4571 near term (next day or two). This would likely complete the first leg of a larger 3 wave correction from the top.