Forex FOREX PRO WEEKLY, May 20 - 24, 2019

[Stag]

The Euro abruptly reversed from 1.1142 and impulsively advanced in five waves in relatively short order, topping at 1.1188.

The deep pullback from there is close to common targets for a second wave correction, the ~.80 Fibonacci retracement of the prior rally from 1.1142 - typical price action following a leading diagonal. However, if the rally was a first wave, the wave 2 correction should be near an end.

A turn above 1.1166 will bolster confidence in the bullish call but 1.1142 should hold as support. A new low would turn the three wave decline off 1.1263 into a five wave structure and there should be more decline to come - supporting Sive's scenario.

Greetings guys, a short update again.

Prices hit a new low and the decline turned into a five wave sequence allowing further weakness as indicated. The sequence completed its fifth wave at 1.1107 as a larger ending diagonal. Then we had a lightning fast reversal from there, giving no opportunity to join the rally.

The rally from 1.1107 seems to be in five waves up to 1.1205. The recent setback should be corrective and likely represents the early stages of a still unfolding ABC Zigzag wave 2 with a final price target around 1.115x (a poke below 1.1177 will bolster the case). If wave 2 is complete a third wave rally to a new high above 1.1205 should take place.

Wave 3 would travel the same distance as wave 1 at 1.125x, a price target very close to the previous top at 1.1263 though I expect slightly higher prices closer to 1.1300.

It is still early to say but keep in mind that the Euro may have found its final bottom of its larger decline. Our longer term critical key level is at 1.1324. A break above this level opens the door for much higher prices for weeks ahead.

Good luck.