EURUSD and GBPUSD in an impulsive decline - where next?

EURUSD and GBPUSD in an impulsive decline – where next?

The USD is higher across the board, while stocks are moving sideways ahead of the FOMC today. Such events can be very important for trend changes, so it could definitely to be prepared rather than surprised.

On EURUSD we are tracking an impulsive decline in progress, but the impulses are also structured by corrections. On the chart below we have been looking for a five wave drop within wave v of red wave iii) and it looks like we have it just now. The pair fell into our Fib. support levels around 1.3400 where round numbers could act as a support. We still suspect that sooner or later EURUSD will rally into a correction that could give us an opportunity to join the downtrend.

EURUSD 1h Elliott Wave Analysis

GBPUSD is showing a very similar price action. The pair fell to a new low, towards our 1.6940 projected level and even lower, as highlighted yesterday. It made five waves down from around 1.7000 so a correction is expected. There is also a minor divergence on the RSI suggesting a short-term bounce. I would say don’t sell here, wait on higher “better” levels for shorts.

GBPUSD 1h Elliott Wave Analysis

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

View all posts by Gregor Horvat