November 9, 2018 | AtoZ Markets
EURUSD fell to its 8-day low after a hawkish fed and a renewed interest in the Asian market drove Dollar to a new high. Will EURUSD drop below 1.13?
Dollar has regained its year long dominance over its peers after yesterday’s Fed meeting ended with a hawkish undertone. In the Asian market today, Dollar was hugely bought and it gained wildly against other currencies. Since the Fed meeting yesterday, EURUSD has dropped about 100 Pips to trade below 1.1350 and therefore hit its lowest price in 8 days. The bearish move is set to continue as the London market opens.
Prior to this fast fall, the pre-Fed EURUSD Elliott wave analysis expected price would drop below 1.14 and hit below 1.13. Price had completed a corrective zigzag pattern which lasted for a week. The Zigzag pattern stretched between 1.13 and 1.15 which are very important and significant levels. The Zigzag pattern also ended with a 100% Fib-ratio relationship between the first and last leg of the pattern. As it stands now, Euro is expected to drop further next week.
EURUSD Elliott Wave Analysis and Important Price Levels
From 1.15, the chart above shows the development of another bearish impulse wave from 1.15. The year-long bearish trend has resumed and is expected to break below 1.13 this time. The 3rd sub-wave of the current degree is expected to drop below 1.13, come to retest it and drop further. In the much larger degree, price is in the 5th wave of the year long bearish impulse wave. The 5th wave, if it completes with an ending diagonal, should have a 1.12-1.11 target. If the 5th wave completes an impulse wave instead, then a dip to or below 1.1000 could happen. A fast break above 1.15 would invalidate this forecast.
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