Analysis: EURUSD Slips to October Low Amid Italian Budget Woes

EURUSD loses more ground against the Dollar as Italian budget weighs in. Price hit October low after breaking below 1.143.

EURUSD ended yesterday bearish to almost complete a bearish week. The break below 1.15 was expected to lead to further price dip to 1.143 and 1.14 handle after the last FOMC. The EU summit ended yesterday with talks on Brexit on hold. The US dollar has benefited from FED rate cut in the midst of a robust economy and it looks likely to continue its bullish trend.

Euro was relatively quiet in the Asian session today, oscillating between 1.1448 and 1.1470 in a 20-Pips range. However, at the start of the London market, price has dipped slightly to 1.143 which is an important level. 1.143 is the lowest price level this month, thus can be taken out if the bearish pressure persists. The next bearish targets are 1.14 and 1.13 handles.

EURUSD Elliott Wave Analysis and Important Price Levels.

The drop from 1.16-1.1620 is showing a real trendy move. The year-long trend is bearish. From 1.16-1.1620, there is an emerging impulse wave pattern which is expected to break below 1.143. If price bounces off from the current level, it would be expected to be limited and stay below 1.15. After an impulse wave (5 wave), a corrective wave is expected to follow. After a break below 1.143, price will likely pause into a sideway move or a big bullish correction. On the upside, a new push above 1.15 might happen if price fails to break below 1.143. If price gets back to the double top zone, the bears might likely surrender to a new bullish drive above 1.162. The next bearish targets at 1.14 and 1.13.
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