Euro fell by 4.5 percent in February, that would be just first-wave of wave D of the triangle as Intermediate wave (B).
The Minor-degree wave D would likely achieve the Fibo 0.618 expansion level at 1.06468, in a three-wave sequence.
As shown on the N.G. daily chart below, a countertrend rally in Minor-degree wave C would trace out Intermediate wave (4) as a flat correction in three waves.
Accordance with the Elliott Wave Principle, in a “flat” correction:
After extended Intermediate wave (3), the price is correcting in Intermediate wave (4) which would likely tracing out a three-wave as a flat correction.
Based upon this wave count, an impending countertrend rally in third wave of the wave (4) is anticipated.
The wave (4) will eventually result in a final decline as the wave (5) of Primary wave ((C)).
Oil may still remain in the process of correcting in sideways, as long as hold under 34.82. Any break of this level would negate a running triangle as the fourth wave developing, since its wave c cannot move beyond the wave a extreme.
Based upon this wave count, the sideways developing will result in resuming decline of Minute-degree fifth wave.
Sideways Developing :
Today is the first strong rally day in Dollar Index in the last month, that would raise confidence that Minor wave D advance is underway.
As noted in the prior posts, Intermediate wave (4) would develop in sideways over the months ahead. With respect to a triangle correction as the fourth wave, its Minor waves A and B are complete, wave C could have completed too, wave D up is ongoing, and wave E down/sideways will lie ahead.
Sideways Developing :
As shown on this daily chart, Euro should remain in the process of correcting in triangle wave (B) over the coming months.
With respect to the triangle correction as Intermediate wave (B), its Minor waves A, B and C are complete, wave D down is falling now, and wave E up would lie ahead.
The current decline in Minor wave D will likely achieve the Fibo 0.618 expansion level at 1.06468. (wave D = 0.618 wave B, a common relationship between the same direction subwaves of a triangle.)
Bullish Outlook :
The Gold’s volatility should continue in the 50 points range over the coming weeks, and the trading range would contract around 1219.3.
The price volatility will be counted as Minor wave 4, which is prior to advance in the same degree fifth wave of (A). (As noted in the recent post, Intermediate wave (A) would achieve the origin of the expanding diagonal at 1307.8.)
This week, 8.8% decline of Oil indicates the fourth-wave of its triangle wave (iv) is falling now (wave d, which is prior its same degree wave e up).
The decline of wave d would achieve the Fibo 0.618 expansion level at 28.11. (wave d = 0.618 wave b, a common relationship between the same direction subwaves of a triangle.)
Note : The ultimate target for final decline of Minute wave ((v)) will be able to assess after pointing the triangle’s extreme.