Euro is gaining ground again after a weakening dollar raises much concern on the US-China trade war. Euro is gaining back the losses of last Friday. What next based on 17 September EURUSD Elliott wave analysis?
At the opening of the London session today, EURO started a real bullish push. The rally has now increased as the Dollar weakens. Last Friday, EURUSD lost almost all the gains it gathered the day before but today has seen much of a bullish recovery. Price has now surged to 1.167. If this continues, a break above the 1.18 handle is likely.
In the last update, we expected a 3-wave bearish dip to the 1.145-1.15 Fib-zone but price instead advanced to 1.17 leaving a shallow double bottom at 1.153. The chart below was used in the last update.
A 3-wave bullish correction is expected up to 1.2 after the end of the the impulsive wave A at 1.13. The wave analysis above count shows the year-long trend is still bearish. The rally from 1.13 to 1.1735 is impulsive – indicating what could be the first leg of the bullish correction – labelled wave a (circled in red) and the drop from 1.1735 being the second leg – labelled wave b (circled in red). If the drop could continue up to 1.1463 (61.8% Fib-retracement of 1.13-1.1735 rally). The alternative wave count expected an impulse wave rally far above 1.2. The two wave counts suggest the upward direction unless price breaks below 1.13.
Price rallied instead but couldn’t break above 1.1735 important level. Will that happen this week? What are the next levels to watch out for?
17 September EURUSD Elliott wave analysis
The correction might have ended at 1.153 with a double low, just above the 50% Fib-retracement level. A break above 1.1735 should be enough to confirm the continuation of the large degree bullish correction. If this happens, price should head toward the 1.2 handle. On the other hand, if price is once again resisted at 1.1735, the next price below is 1.153. A break below 1.153 will set price between 1.135 and 1.145. Stay tuned for the next update.
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