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EURUSD: The Ending Diagonal Option
On March 16, in my last review of the long-term Elliott Wave Pattern I discussed three potential scenarios for the advance from the July 2012 low.
In my opinion the scenario of an Ending Diagonal, which would complete a Triple Zig Zag, has a good chance of panning out. Keep in mind that if this pattern were correct price would establish a major top.
In the following daily chart if we zoom in the time frame of the assumed Ending Diagonal we can see that both the wave (I) and wave (III) took almost two months to be completed and also both were formed with complex corrective patterns. The assumed pending wave (V) could last more or less the same time. lets hope that it unfolds an easy Zig Zag like I show in the chart.
Probably we should be close to the end of the wave (A). Once the wave (A) is in place the following wave (B) pullback should remain above the 20 dma which today stands at 1.3805.
Regarding the final wave (V), barring an overshoot above the upper converging trend line, it should top in the range 1.4025-1.4050.