EURUSD Update III: Larger Trend Remains Up (Elliott Wave)



Following the previous article about EUR/USD, here is an update: EURUSD reversed sharply lower last week after the ECB press conference. But despite the recent pull-back, the larger trend for the EURUSD remains bullish.

EUR USD Elliott Wave Analysis Main Chart February 11 2013

The reasons is that on a weekly chart  we can see that the pair is still above two very important trend-lines connected from 1.0240 and 1.2660. Therefore, we think that the bearish moves are only temporary.

On the 4h chart below we can see that the decline in C from 1.3596 can be counted in five waves, which means that the whole three wave A-B-C decline from 1.3710 high could be near completion.

Keep in mind that the three wave movement is in a corrective structure, so the larger uptrend could resume, but we need some evidences from the market before the bullish case can be confirmed. With that said, we need an impulsive rally back towards 1.3500; only then we will focus on new leg higher, back above 1.3700.

eurusd2

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About

Gregor Horvat is  based in Slovenia (Central Europe) and has been in Forex market since 2003. He is technical analyst and individual trader who also provide a lot of articles and trade plans based on the Fibonacci and Elliot Wave principle. He was working for Capital Forex Group and TheLFB.com. His feature articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, oil, gold, and the U.S. stock market. Gregor Horvat is also 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). EWP provides a method for identifying price points at which a market is most likely to turn. Knowing the probable swing and reversal points provides confirmation of where investors could enter and exit positions for the highest probability of success. Gregor Horvat Chief  Technical Strategist Website:  For more analysis visit our website and Try our services absolutely free for 7-days! http://www.ew-forecast.com/service//

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    Forex Daily Table February 11 2013
    Steadier

    Data/Event Risks No major releases today that will upset things.  Markets more on guard for comments...

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