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EURUSD Elliott Wave Analysis: Will Price Fall After Completing a Corrective Pattern?

Sanmi Adeagbo | Nov. 8, 2018
EURUSD Elliott Wave Analysis: Will Price Fall After Completing a Corrective Pattern?

November 8, 2018 | AtoZ Markets

Euro dropped close to 1.14 after completing a corrective pattern at 1.15. Will price drop further?

After yesterday's bullish push was resisted at 1.15, EURUSD has dropped close to 100 Pips in less than 24 hours. Almost all of yesterday's gains was taken back in an end-of-day bearish move. Today, price opened around 1.1433 and has dropped close to 1.14. This bearish move started after price completed a clear zigzag pattern as expected in the last update. If price resumes downside, we will definitely close this year on a bearish note. The Euro move this year is inversely related to last year move. Last year, price advanced to complete an impulse wave which was expected to be the first leg of a larger bullish correction. This year, as well, price's decline is about completing an impulse wave. The 4th wave of the year-long impulse wave trend ended at 1.182. It seems the current pullback has ended at 1.15 (which has consistently acted as an important price level) and Euro will decline to 1.13 and even below.

EURUSD Elliott Wave Analysis and Important Price Levels

The chart shows the rally from 1.13 to have completed a Zigzag corrective pattern. Wave a and c also show equality relationship (Wave a = 100% Fib-projection of wave a) which is more common than other wave a-b Fibonacci relationships. Wave c of this correction completed an ending diagonal. Price quickly dropped to 1.14 at the base of the zigzag channel. There might be a pullback to 1.1455 intraday level before price resumes downside below 1.14. Price is expected to test 1.1350 and 1.13 on its way downside. On the other hand, a break above 1.15 could lead to a more complex corrective pattern. Though this is less likely than the bearish forecast, but it's a possibility.

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