EURUSD Elliott Wave Analysis: Euro Eyes 1.13 as Bearish Trend Resumes

EURUSD continues downside after breaking below 1.1333 intraday support. Price is about to hit 1.13 bearish target as the year-long bearish impulse wave continues.

October 2018 | AtoZMarkets – Euro started today quiet in the Asian session, moved between 1.1350 and 1.1335. However, at the start of the London session, price went out of range and rallied to 1.336. The early gain couldn't be sustained as price dropped fast, breaking below 1.1333 intraday support level. The bearish move continues in the New York session as Euro traded 10 Pips shy of 1.3 handle.

The Eurozone data that came yesterday was amiss – below expectation. Despite this, Euro stayed stabilized yesterday, between 1.1433 and 1.1333 intraday range. A break out of either of these extremes was expected to signal the near-term Euro direction. That happened to be the case currently as Euro gets close to 1.13 handle. Will price dig below?

EURUSD Elliott wave Analysis and Important Levels

The 5th wave which started from 1.182 continues. 1.13 is expected to be taken out as price aims Fibonacci extension targets. Elliott wave theory among other things, gives likely price targets for the end of a wave pattern. The most widely used target for the end of wave 5 of an impulse wave is the projection of wave 1 to 3 from wave 4. 38.2% to 61.8% Fib ratios are often used for this cause. For the case above 50% and 61.8% Fibonacci projection of wave 1-3 from 4 lie at 1.119 and 1.1042 respectively. Unless wave 5 would be extended (which is highly unlikely considering the fact that wave 3 came extended), wave 5 should be limited at 1.1190-1.1042 price zone. Break out below 1.13 is very important to achieve this and price is about doing that.

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