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Technical analysis

EURUSD Elliott Wave Analysis: Price Stays Stable and Corrective at 1.14

Sanmi Adeagbo | Nov. 23, 2018
EURUSD Elliott Wave Analysis: Price Stays Stable and Corrective at 1.14

November 23, 2018 | AtoZ Markets

EURUSD stays quiet and stable at 1.14 ahead of the euro-zone manufacturing and services PMI. The following give insights based on Elliott wave theory.

Yesterday was thanksgiving day in the U.S and the market was quiet except the big Sterling bullish spike. EURUSD stayed around 1.14 throughout yesterday and has started today quiet as well. Since last week, the Euro has rallied on the back of a weak Dollar and a renewed Brexit optimism. The US-China trade battle still stays inconclusive at the moment. Today, the Euro-dollar might act on the Euro-zone services and manufacturing PMI data if there are big surprises.

Technically, it was expected that the Euro-dollar would climb further as price completed the year-long bearish impulse wave at 1.1215. In the last update, the rally from 1.1215 up to 1.147 was labelled as a zigzag pattern. From the 1.1470, price quickly dropped 110 Pips to stay 40 pips below the 1.14 handle. The rally that followed from 1.1360 looks corrective around 1.14 and price might drop further to 1.13 before returning upside. What has changed since the last update?

EURUSD Elliott Wave Analysis and Important Price levels

From 1.1215, price is looking to start a complex corrective pattern - a double or triple zigzag is possible. A flat bullish corrective pattern is also possible. What about a triangle pattern? Also a possibility. Triangles, flats and double/triple zigzags are the corrective patterns that start with a corrective leg. A flat or triangle correction might not see off a big rally to 1.2 as earlier expected. But a double/triple zigzag will lead a 1.2 hit in the coming weeks. Unless price drops below 1.1215, any of these patterns could emerge from 1.1215. In the meantime, a dip to 1.1315-1.13 is expected if price drops heavily below 1.14.

What are your thoughts? Please share with us in the comment box below.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.