EUR/USD: Follow Up Of The Short Term EWP
Tomorrow we have a major event risk:
ECB will announce/implement decisions.
Some of the news should already be priced in but, if the current resistance area located at 1,2622 is breached with an eod print, I would not rule out another "surge" towards the next resistance located in the 1,2750 area.
Below in the daily chart, don't pay attention to the count off the May 1 peak, but instead watch the 2 mentioned horizontal resistance layers.
Regarding the EWP off the July 24 low I have 3 options within a Double Zig Zag:
- The final wave (C) of (Y) is unfolding an Expanded Ending Diagonal. If this is the correct count the top should be below / at 1.2700
- The final wave (C) is involved in the early stages of unfolding an Ending Diagonal. Here we have an extension target in the range 1.2689 - 1.2776
- Price is still unfolding a complex Triangle wave (B). The extension (Y) = (W) is at 1.2689 while the equality target for the assumed wave (C) up may be located in the 1.3800 area (Maybe too overly bullish target).
Tomorrow morning I will most likely abstain from posting since I want to see the price reaction to the ECB statement.