EURUSD hit close to 1.14 prior the start of the New York session on Tuesday. Will price drop further? The following give insights based on Elliott wave theory.
February 05, 2019 | AtoZ Markets - EURUSD bullish run retreated just above 1.15. Currently price has dropped back, eyeing 1.15 as Dollar gained some momentum to rally after last week FED-induced bearish pressure. ISM non-manufacturing is the only high impact economic event for today. It seems EURUSD will continue downside if price stays below 1.15 handle. However, it's highly probable that a minor bullish correction would happen to 1.145-1.1475 before a big bearish swing down to 1.13 or below.
On Monday, the market was quiet with EURUSD only traded between 1.145 and 1.142. Yet, the slow move continues today with the London session particularly quiet. Price started around 1.144 today before dropping to 1.141 but has been currently lifted to 1.143 and it seems an important intraday price pattern has completed. This pattern goes in sync with the overall wave analysis of the last one year or more. In the last update after identifying that the rally from 1.1290 was the correction of the previous 1.157-to-1.129 impulse wave dip. The larger degree correction ended at 1.157 and unless the bulls push above, the downside move is more likely. The chart below was used in the last update.
We had 1.15-1.1525 as the reversal zone where wave ii (circled) should be completed. After completion, a dip below the red rising trendline into 1.14-1.145 territory would be the first bearish confirmation. How has price moved?
EURUSD Elliott wave Analysis and Important Price Levels
Price dropped from 1.1515 and dropped to 1.141 to complete a minor intraday wedge/leading diagonal pattern. A 3-wave minor bullish correction to 1.145-1.1475 (or shallower) should follow before price breaks below 1.141 to confirm the bearish run to 1.13-1.1215 and even below. The bearish expectation would be invalid if price breaks above 1.1515 minor top.
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