Elliott Wave analysis on EURUSD and S&P500

April 11, 2016 10:06 AM


The EURUSD is trading quite slowly and overlapping in the last few sessions, after the pair completed a five-wave move in blue wave a-circled. We are observing an idea of a triangle pattern in wave b-circled, that may be near completion, as price is now unfolding in wave e), the last leg of a triangle pattern, that can after its completion lift prices higher, ideally toward the 1.150 area. 




The E-mini S&P500 moved down last week, deeper into red wave 4) which now already shows three subwaves from the highs, so actually an uptrend could resume soon. However, normally fourth waves will retrace back to the area of a former wave four, which comes in near 2010. At the same time 38.2% also is a very important Fibonacci level when it comes to predicting the end of fourth-wave pullbacks. That said, further weakness to around 2000-2010 should not surprise us before the market turns up for a wave 5).

S&P500, 4H

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 TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/