What should be expected after EURUSD completed a triple zigzag correction upside?. Based on 6 February EURUSD Elliott wave analysis, the Euro is expected to drop especially IF the rising channel is broken down.
06 February, AtoZForex – The EUR has been rallying since December 2016. The rally is clearly corrective, though a strong one. Price is expected to resume downside. The chart below shows a wave (4) of 3
Based on 6 February EURUSD Elliott wave analysis, a dip is imminent. A strong dip that could go below 1.025. The corrective pattern is a typical triple zigzag. What is triple zigzag pattern?
According to the Elliott wave theory, the triple zigzag pattern is an extension of the zigzag pattern. Triple zigzags are analogous to an extension of the impulse wave. They are not common but they do exist not rarely.
Triple zigzags can be mistaken for an impulse wave. They have 5 legs in the manner of an impulse wave but with corrective subwaves. The legs are w,x,y,xx and z. w, y and z must be zigzag patterns. The upward flow interrupted by counter-trend x and xx legs. x and xx can be any corrective pattern- zigzag, flat and triangles.
6 February EURUSD Elliott wave analysis: triple zigzag pattern?
The aforementioned corrective rally in EURUSD has a similar structure with a triple zigzag pattern as shown by the chart below.
The pattern above replicates the triple zigzag described above. It is formed within a channel- typical of a triple zigzag. This pattern also completes at 50% Fibonacci retracement of wave (3) of 3.
Price could start a new journey downside with a break below the triple zigzag channel. The entry strategy of a triple zigzag pattern is to wait for a breakout.
Conversely, if price bounces off the support channel to break above 1.0822, price will be heading to 1.09 – 1.1. It is at the bounce of the support channel that this pattern is invalid.
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