EURUSD Elliott Wave Analysis: Selling Continues as Price Eyes 1.13

EURUSD continued bearish yesterday after the European Central Bank (ECB) meeting. The sell off continues as price eyes 1.13 handle.

October 2018 | AtoZMarkets – Dollar has seen its fortune increased in the last couple of weeks – strengthened against other majors. Euro on the other hand is surrounded by uncertainties and hugely influenced by softer data in recent times. The ECB yesterday affirmed its commitment to ending asset purchase program in December despite major concerns on Brexit and Italy's budget. Euro slumped below 1.143 support level this week thereby opening the possibility for further weakness to 1.13 handle. Today, market was been silent in the Asian session despite Chinese yuan slide. Currently trading at 60 pips above the 1.3 handle, EURUSD will look forward to today's US GDP data to determine whether price will hit 1.3 this week or not.

EURUSD Elliott Wave Analysis and Important Price Levels

With about 2 months to the end of 2018, the yearly trend will almost certainly end bearish for EURUSD. Since the beginning of the year, Euro has dropped close to 1200 Pips, about -9.5%. Trends move in 5-waves according to Elliott wave theory. The current decline is the 5th wave which started this month at 1.162. In the last update, we looked at the development of the 5th wave projected to hit 1.13 as its 3rd sub-wave gets underway.

During the ECB meeting yesterday, price retested 1.143 but was well resisted. The bearish trend continued with a big dip to few pips above 1.1350. The 5th wave is not yet complete. If today's US GDP data came worse than expected, we should see price rally toward 1.143 before dropping further to 1.13 support level. 1.13 is the minimum for an un-extended 3rd sub-wave of wave 5. Price could go further downside. Once price breaks below 1.13, the next price levels of interest are 1.12 and 1.11 and the support levels in-between them. On the upside, if price breaks above 1.143, we might see another retest of 1.15. A break above 1.155 will dislodge this bearish development.

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