EURUSD Elliott Wave Analysis: Euro Rejects 1.13 to Push Higher

EURUSD rebound from 1.13 on Thursday to trade close to 1.14. What are the important price levels to watch out for before market focus shifts to Friday’s employment data from the U.S.

October 2018 | AtoZMarkets – EURUSD dropped below 1.1333 intraday support yesterday to hit 1.13. It was expected that price would break below 1.13 to continue the year-long bearish impulse wave. Report about a Brexit deal on financial services boosted Pound and the ripple effect was seen on Euro. EURUSD stayed above 1.13 support and gained close to 80 Pips. After today, the market focus will be shifted to tomorrow’s employment data coming from the U.S. What are the important emerging price patterns and important levels of interest?

EURUSD Elliott Wave Analysis and Important Price Levels

H4 Chart

Just like we have in the last update, EURUSD is still bearish as shown in the chart above. Price might still end the year bearish as the year-long impulse wave develops downside. The 5th wave which is currently completing its 3rd sub-wave should break below 1.13 to continue. Unless the 5th wave would end as an ending diagonal slightly below 1.13 (or truncated around 1.13), an ‘impulsive’ 5th wave would extend to 1.1 or below as the chart below shows.

30 Mins Chart

The current rally might extend to 1.143 to 1.155 before dropping further. If the 5th wave would continue as an impulse wave, price would dig far deeper than 1.1. Only an ending diagonal 5th wave would keep price above 1.12 before a large bullish recovery would be seen. If price breaks above 1.162, the bearish scenario on the 30 Mins chart above becomes invalid.

Think we missed something? Please share with us in the comment box below.


    Share Your Opinion, Write a Comment