EURUSD Elliott Wave Analysis: Price Continues Upside Ahead of US Elections

EURUSD is continuing upside after being held above 1.13 since last week. Will today's congressional elections in the US pose a big risk?

November 2018 | AtoZMarkets – EURUSD continues upside on Monday after a fast drop to 1.1355. Today, in the Asian session, the price moved around 1.14 but rallied to 1.1425 (yesterday's high) early in the London session. 1.1425 acted as a temporary barrier and the price is currently trading a bit above 1.14. Today, voters in the United States will elect 435 members of the House of Representatives and 34 senates, amid expectations of a Dollar upsurge if the elections work in favour of the Republicans, while some believe the market will keep going inconsequentially to the elections results.

EURUSD Elliott Wave Analysis and Important Price Levels

From 1.13, EURUSD has been emerging into a clear zigzag pattern. It is expected that the year-long bearish trend would continue once the bullish correction is over. Elliott wave theory helps to identify possible ways a correction will end and when it would. The current bullish correction however, is expected to continue to 1.15-1.1550. In yesterday's update, we expected price to drop to 1.1360-1.1333 support zone and then rally toward 1.15-1.1550 bullish target zone. Price did drop to 1.1355 and rally as the chart below shows.

The second leg of the bullish correction ended at 1.1355 yesterday with a swift rally to 1.1425. Price has retested 1.1425 early today but has failed so far. A break above 1.1425 would confirm the bullish scenario with price potentially advancing further to 1.15-1.155 target zone. After 1.1425, there is 1.1455 and 1.15 upside. To the downside, if the price stays below 1.1425, we might see a break below 1.1355 and a retest of 1.13.

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