EUR Shining More Than Sterling
First of all, the March low to May high was an equal wave pattern where the (c) leg is equal in length to the (a) leg. Typically, that speaks to being corrective, but not in all scenarios.
The move from May 27 to June 9 is clearly a 5 wave move. In Elliott Wave Theory, that suggests the near term trend is pointed higher. The subsequent counter trend drop was a partial retracement of only 78.6% to .7126.
Therefore, the higher probability trade is for another 5 wave move higher that tests .74.
See notes in the chart below.
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Created using TradingView charts.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.