EUR/USD trading bullish; upside can be limited

August 1, 2017 08:59 AM
Elliott Wave Analysis: EUR/USD daily & intraday forecast

Today we are going to look at the euro/U.S. dollar (EUR/USD) currency pair, it's 4-hour and daily view.

On the 4-hour we can see EUR/USD trading bullish, now seen in final stages of a Red Wave v) of five, which means upside can be limited in the next couple of days. Specifically, we see price trading within Black Wave v of v), with a potential projection zone of 161.8 Fibonacci ratio. Ideally there, the bulls will slow down and bears will take charge. A reversal and break beneath the previous swing low of Wave iv at 1.1649 level will confirm a change in trend.

EUR/USD, 4-hour

Below, we see a daily chart of the EUR/USD, which gives us an insight of where the price could go if it reverses. The turning point that can happen on the 4-hour chart would be a start of a higher degree three wave correction of Wave 4 that we expect to unfold in the next days or weeks. This higher degree correction would be only temporary, which means we would still expect more upside to follow, once it fully unfolds. 

EUR/USD, daily

 

Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All our work is for educational purposes only.

 

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/