EUR/USD trading in final wave five; upside can be limited

May 16, 2017 08:28 AM
Elliott Wave Analysis: EUR/USD

The euro/U.S. dollar (EUR/USD) currency pair is at new highs, back above 1.1000 which we assumed would happen based on another strong move up yesterday that had a quality of an impulsive price action. Investors and traders are becoming increasingly bullish on the euro, but we see the pair in fifth waves, including five sub waves up from 1.0840; so, despite a strong leg up there is a chance for limited upside. Technically the market will be expecting to make a three-wave retracement to the downside. Keep an eye on current red Wave v) that may look for a first resistance at the upper line of an Elliott Wave channel.

EUR/USD, 1 hour

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: