EURUSD is on its way upside to complete the last leg of a sideway triangle pattern. The following 20 July EURUSD Elliott wave analysis looks at the EURUSD based on Elliott wave theory.
Since late May, EURUSD has been swinging up and down making 1.185 high and 1.15 low. The swing continues but with lower momentum and magnitude thereby making a case for a triangle pattern. A triangle pattern is about completing as the 4th wave of a bearish impulse wave that started early this year. In the last update, we discussed about price completing the d-leg of this triangle. According to Elliott wave theory, triangles have five sub-waves. This means that, price would take more leg upside before the anticipated huge drop to 1.11 region starts. In the last update, the chart below was used.
The chart above shows the d-leg of the triangle about to complete. Triangles, according to Elliott wave theory, have five sub-waves labelled a to e. The Euro could still make one more rally before the final bearish breakout. If the current dip goes below 1.15, we will have to go back to the 16 July forecast.
20 July EURUSD Elliott wave analysis: what next?
Price bounced off to complete wave (d) and then look upside. We should have more rallies up to 1.1745-1.1755 to complete wave (e). Price is expected to slow down at this price zone if the triangle would hold. A fast break above 1.1755 up to 1.185 would invalidate this forecast. If price is well resisted there, we should probably prepare for a fast move downside up to 1.11. Stay tuned for the next update.
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