Euro is back close to 1.14 ahead of the today’s ECB press conference. What could happen next? The following give insights based on Elliott wave theory.
December 13, 2018 | AtoZ Markets – The Euro is making upside waves this week after dipping close to 1.13 at the end of last week. The US-China trade talk and the EU-Italian face-off have been the major political events most investors look out for closely in the most recent times. EURUSD has stayed within a big range after the 1.1215 to 1.147 quick rally that followed (what might be) the end of the year’s bearish wave. The market will focus on today’s ECB press conference as the bank declare the economic state of its members and also make forecasts.
After Euro bottomed at 1.1215, there was an expectation of at least a 3-wave bullish correction. According to Elliott wave theory, a 3-wave in the opposite direction follows a 5-wave trend. This year has seen EURUSD stayed downside in what completed an impulse wave with a diagonal 5th wave. The correction however, has not been as swift as expected. Since the rally to 1.147, price has stayed contained in a range. In the last update, we looked at the possibility of a triangle pattern. So far, price is playing in this direction.
EURUSD Elliott Wave Analysis and Important Price Levels
Price has moved exactly as predicted in the last update. The current rally should continue to 1.14-1.1425. A bridge above 1.144 will set price free upside. However, there might be one last dip downside to complete a triangle wave b (circled) before the bullish trend continues to 1.155-1.16. The bullish scenario will be invalid if price drops below 1.1215.
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