Probable Elliott Wave Extended Fifth Wave of the Dollar has More Room to Run
I still don't think the Elliott wave 5 wave set up from 74 is over. Price tagged the .618 extension of Elliott waves 1-3 up from the end of Elliott wave 4 at 80 and has pulled back to a .382 Fibonacci retrace of that sub-structure.
Based simply on the pattern of that sub-structure, It appears that price is currently in Elliott wave iv of 5. The probable target for a move higher from this level is the Fibonacci confluence between the 2.618 Fibonacci extension of wave 1 and the 1:1 ratio of Elliott waves 1-3 around 88.50. It is common for an extended fifth wave to be a 11 ratio of waves1-3.
On the other hand, If price continues to pull back, the Elliott rule break for Elliott wave iv moving below the high of Elliott wave i of the 5th wave sub-structure up from 80 is 82.16, give or take a few ticks. A rule break here signals that the higher level of degree wave set up from 74 IS complete, and that a retrace of the entire wave set up from 74 is in progress.
Right click on chart (view image) to enlarge
Based simply on the pattern of that sub-structure, It appears that price is currently in Elliott wave iv of 5. The probable target for a move higher from this level is the Fibonacci confluence between the 2.618 Fibonacci extension of wave 1 and the 1:1 ratio of Elliott waves 1-3 around 88.50. It is common for an extended fifth wave to be a 11 ratio of waves1-3.
On the other hand, If price continues to pull back, the Elliott rule break for Elliott wave iv moving below the high of Elliott wave i of the 5th wave sub-structure up from 80 is 82.16, give or take a few ticks. A rule break here signals that the higher level of degree wave set up from 74 IS complete, and that a retrace of the entire wave set up from 74 is in progress.
Right click on chart (view image) to enlarge
Posted by TheMarketDetective at 5/4/2010 7:39 PM 
Categories: Forex, Fibonacci, technical Analysis, Elliott wave
Tags: .618 fifth wave extension Elliott wave Elliott rule break Fibonacci retrace Fibonacci Fibonacci extension Fibonacci confluence
Categories: Forex, Fibonacci, technical Analysis, Elliott wave
Tags: .618 fifth wave extension Elliott wave Elliott rule break Fibonacci retrace Fibonacci Fibonacci extension Fibonacci confluence
Wow!, this was a real quality post. In theory I'd like to write like this too - taking time and real effort to make a good article... but what can I say... I keep putting it off and never seem to get something done.
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