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Technical analysis

EURUSD Elliott Wave Analysis: Will Price Drop to 1.13 Before Resuming Upside?

Sanmi Adeagbo | Nov. 21, 2018
EURUSD Elliott Wave Analysis: Will Price Drop to 1.13 Before Resuming Upside?

November 21, 2018 | AtoZ Markets

Euro is back at 1.14 after failing to hit 1.15 price level. What could happen next? The following give insights based on Elliott wave theory.

EURUSD returned downside from 1.1475 yesterday, to almost hit 1.1350. Today, price has started bullish with a move back to 1.14. The rally from 1.1215, was expected to signal the end of the year-long bearish trend. The US-China trade deal, the EU-Italy face-off and even the EU-UK Brexit deal have been the major political risks concerning this currency pair. Later today, the market expects the US core durable goods orders to come at 0.4% better in October.

From technical analysis perspective, a 3-wave bullish correction might have started from 1.1215. Euro prices could surge further to 1.2 early next year. The rally from 1.1215 looks corrective which means that the 3-wave bullish corrective forecast to 1.2 might be a complex pattern - a double zigzag or triple zigzag as the chart below shows.

EURUSD Elliott Wave Analysis and Important Price Levels

In the last update, we expected the drop to be limited at 1.14 to complete an impulse wave from 1.1215 to 1.15. The current market wave pattern as shown above, indicates a possible zigzag pattern from 1.1215 has completed at 1.147. The price drop since yesterday might continue, to retest 1.13 level. A break above 1.147 should see price hit 1.162 intraday level. A strong dip below 1.13 could hamper the bullish development and continue the bearish scenario.

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.