EURUSD rallied last week to complete what could be the last leg of a corrective pattern. Will price drop fast soon? The following 23 July EURUSD Elliott wave analysis looks at EURUSD based on Elliott wave theory.
Last week, we looked at the possibilities of EURUSD making a 4th wave triangle pattern. By now, we should know that EURUSD is completing a bearish impulse wave that has run for most part of this year so far. This impulse wave dip was thought to have completed the 4th wave at 1.185 before dropping to 1.15. But the sideways corrective move between 1.185 and 1.15 is showing a corrective pattern known for wave 4 of an impulse wave. The 4th wave is completing a triangle pattern with the last leg almost complete. If this forecast is validated by price, Euro may start dropping. The chart below was used in the last update.
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.
23 July EURUSD Elliott wave analysis: what next?
The last leg looks to have completed. We should expect fast decline to 1.13 in the coming days. We will start counting a bearish impulse wave from wave (e) to know how deep the 5th wave would be. This forecast would be invalid at 1.1795. Stay tuned for the next update.
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