The euro chose to follow the alternate count by moving toward the downside, reaching both of our expected targets, and exceeding the second target by 4 pips.

It’s still a little too early to know whether price has formed a bottom or is still searching for one. On the one hand, this fourth-wave correction has plenty of room to drag out its decline. On the other, it has reached an area of support on multiple degrees of trend and fulfilled its minimum requirements.

I think the most reasonable course of action now is to wait for price to reach our new confirmation point, at which time we’ll know that the fifth wave has begun to unfold, and then we can tighten up our invalidation point and set our sights on the upward targets.

Synopsis: By moving above 1.2052, EUR/USD is expected to resume moving toward the upside to reach between 1.2096 and 1.2186, while it remains above 1.1862 and ideally above 1.1913.

Hourly Main Count
– Invalidation Point: 1.1862
– Confirmation Point: 1.2052
– Upward Target: 1.2096 – 1.2186
– Wave number: Minuette (v)
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal