3 Waves Here, 3 Waves There

EURUSD continues to carve a sequence of 3 wave moves. The pattern since mid-July shows an equal wave zig zag followed by a flat correction.

Nothing earth shattering from a trading perspective as indicators are mixed which supports the idea we are stuck in a correction of which we are currently in the middle. Look for extreme edges of the range to consider meaningful trades.

Here is a summary of the main variables/indicators we watch:

Elliott Wave Count - we appear to be in blue circle v of c - this means we are approaching ending waves at smaller degrees and prices may correct lower once these ending waves terminate

Wave Relationships - we look for harmony in the wave measurements and two of them show up in 1.1230-1.1330. Next level of wave relationships are in the low 1.14’s (short term bullish; medium term bearish)

SSI - current reading is -2.1 and this has dropped from -1.4 over the past week. Long positions are down 8.7% from last week and short positions have grown +29.8% over last week. Traders are clearly shifting to the short side. SSI is a contrarian indicator. (bullish)

OBV - Volume is beginning to diverge compared to the latest peak from July 27. This indicates a lack of conviction and probable continuation of range trading. (bearish from higher levels)