EURUSD broke below 1.165 important level. Will price continue downside? The following 27 July EURUSD Elliott wave analysis gives useful insights based on Elliott wave theory.
EURUSD continued the bearish move much expected. Yesterday, price dropped 90 Pips and might continue today and next week up to the 1.15 support. In the last update, we continued a bearish impulse wave as part of the 5th wave of the year-long impulse wave. The 4th wave ended at 1.175 with a triangle pattern. We expected a break below 1.165 to confirm the end of the wave 1-2 of the new prospective bearish leg as the chart below used in the last update illustrated.
The second sub-wave went close to 1.175 before price dropped to 1.165 – wave 1 low. Intraday and short term seller might want to consider a short position once price gets below 1.165. If price goes as expected, the first bearish target to watch out for is around 1.15. Below 1.15, price could plunge further to 1.11 to complete the year-long impulse wave.
27 July EURUSD Elliott wave analysis: what next?
Price broke below 1.165 in the early London session today. The next hurdle is the wave (c)-(d) connecting support line before 1.15. I still believe price will break below 1.15 down to 1.13. We might see most of that next week. Stay tuned for the next update.
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