Euro advance looking like a correction

EUR/USD reversed higher a few weeks back from around 1.2750 level, but recovery since early April still has a corrective look. With that said, we think that move is complex correction, probably a flat and that the larger trend will continue lower, especially if we consider a five-wave decline from 1.3700 and the start of the year. If we are correct, then current bullish leg should stop somewhere around current 1.3400 -1.3450 resistance area.

EURUSD Daily: Elliott Wave Analysis


On the weekly chart we are also still observing the idea of a Head-and-Shoulders pattern, which if correct, should be near completion based on the parallel trend-lines. This pattern is matching nicely with our Elliott Wave Count, but we still need some confirming price action to make sure that EUR/USD is going south. With that said, we would love to see an impulsive fall back to 1.3000 level before bearish reversal can be confirmed! On the other-hand, we will have to change the outlook for the EUR/USD if pair will continue higher in the rest of the year, toward 1.3700.

EURUSD Weekly: Head & Shoulder Pattern


About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and He also is founder of forex services on provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website:

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