EURGBP seems to be working out a flat correction, a typical signature of it is wave B retracing 88.6% of wave A and both are zigzags. This is followed by an impulsive wave C which is supposed to be 1.382 or 1.618 of wave A. We have just completed subwave 1 of wave C and still have a lot of room to go.
Aside from entering long on EURGBP, a few conclusion I draw from this are: 1) there will be no immediate growth in DXY (EUR is a significant part of DXY, so if EUR goes up, DXY will stay flat or decline) 2) there will be no immediate decline in the price of Crude as Crude is correlated with DXY 3) Gold will have one leg up left for the same reason as DXY.
Your wave count is very good. The correction may be complete and resuming downtrend.
Check out traderWgun's at:
Bosphorus_Capital
⋅
the flat may be over like just about now..:)
AndyM
⋅
hehe, yep, might be ))
But in this case I would expect a much sharper decline straight away. Instead we see some choppy movement in the 0.725..0.740 range. And, as we know, what's not a five, is a three. So I expect this congestion to be fully retraced by an upward movement.
TradingEW
⋅
Yes you could be right, anything can happen. That's why I place SL where it comes back up and breaks channel line. :)
Check out traderWgun's at: