EURUSD could be at the verge of a bullish move if the emerging harmonic pattern completes according to the following 17 July EURUSD harmonic pattern analysis.
Yesterday in the last update, we looked at the possibility of EURUSD since May/June to complete a triangle 4th wave. The 4th wave according to our last EURUSD Elliott wave update yesterday is expecting the current dip to be the d-wave (4th leg) of the proposed triangle pattern. If this is the case, then a rally is imminent. In today’s update, we will look at the emergence of a Gartley harmonic pattern in harmony with the last Elliott wave forecast.
EURUSD 30Mins: Gartley harmonic pattern?
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The pattern started at 1.1525 to complete the first leg XA at 1.1790. The AB correction of XA was at 67% (just a bit more than the 61.% required for Gartley pattern). The BC correction was deep at 74% (within 38.2% to 88.6% required for Gartley). The CD leg at 78.6% (which is required for a Gartley pattern) is expected at 1.1583. At 1.1583, we also have 123.4% extension of the BC leg (which falls within the 1.13% to 1.618% range required for Gartley). With a support trendline running close to 1.1583, we would be expecting a bullish bounce at the level according to this pattern. This could be another technical evidence to look for bullish opportunity after the completion of the Gartley completing the D-leg of the triangle.
A strong break below 1.1583 would end the validity of this pattern. A drop below 1.1525 would set EURUSD totally bearish and we would anticipate a drop below 1.15. Stay tuned for the next update.
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