EURUSD was almost sideway in the first trading week of 2018 after a strong bullish 2017. Will there be a significant move this week? The following analysis is based on 8-12 January EURUSD Weekly Elliott wave analysis.
07 January, AtoZForex – Since the beginning of 2017, EURUSD price has been very bullish. The bullish nature of the market can be seen in the impulse wave that started just at the beginning of 2017. Toward the end of the same year, we noticed price completed the 4th wave of the year long bullish impulse wave. The 5th wave would soon start to continue the bullish trend. Before the end of 2017, we were able to establish that price was in the 3rd sub-wave of wave 5 of the year long impulse wave. These are kinds of information we get when we look at the market with Elliott wave theory.
From the discovery above, it was normal for us to think the bullish move would continue in the early stages of 2018. How did the market performed in the first week of the year?. Not much move despite the employment data that came out for the USD. What is the current position of the market in the market trend? Before we look at that in this week forecast, let’s quickly review last update.
The breakout confirmed end of wave (ii) and start of wave (iii). The rally should continue above 1.196 to 1.23-1.25 or above. It’s clear that price has bottomed and a new high could happen.
Price surged higher and broke above 1.196 heading to 1.21 just as expected. Before the end of the week, much of rally at the beginning of the week was dropped as price came back closer to 1.2. What should we expect this week?
8-12 January EURUSD Weekly Elliott wave analysis: what next?
Price is expected to continue the bullish trend this week above 1.196 as wave iii of 5 completes. It should be noted that the rally could still be alternatively labelled as a corrective zigzag which could lead to a strong fall. To keep the bullish trend intact, price is expected to brek the channel upperline upside toward 1.25. A strong dip below 1.196 should be a call for concern for the bulls.
Do you have other views in contrast to the ones listed or you want to compliment them further? let’s know by your comment below.