November 26, 2018 | AtoZ Markets
EURUSD has started the week in a positive mood ahead of today's ECB President's speech. What could happen next from technical perspective?
The Euro has started this week bullish after Sunday's EU Brexit approval. Italy is showing signs of conceding to the EU's demand on its budget deficit. EURUSD might have completed a corrective pattern just above 1.13 to continue the bullish move from 1.1215. ECB president is due to testify about the economy today in Brussels before the European parliament economic and monetary affairs committee. Will EURUSD continue upside?
EURUSD dropped below 1.1360 to 1.1325 last week to complete the 2nd corrective leg of what could be a much larger and complex bullish correction up to 1.32.In the recent updates, we looked at the year-long bearish impulse wave. With an ending diagonal 5th wave at 1.1215, a large bullish correction was expected. The first leg of the rally from 1.1215 completed with a corrective zigzag pattern. This price behavior opens it to varieties of possible corrective structures - triangles, double/triple zigzags and flats are all possibilities. In the lower degree, a rally from 1.13-1.1315 after price dropped below 1.1360 was expected.
EURUSD Elliott Wave Analysis and Important Price Levels
The 1.1470-1.1325 dip looks corrective and well formed within a channel. A break above the upper line is expected to further the bullish move. Above 1.1470, price is expected to at least hit 1.155-1.16 before the next corrective drop. Until the channel is broken upside, there is a possibility of a 1.13 retest before the move continue upside. The bullish forecast will be invalid if price drops below 1.1215.
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