EURUSD Will Move Through 1.1050: Elliott Wave Analysis

I see that the markets have gone crazy last week, with EURUSD turning up almost 600 pips. Some traders can be making good bucks in this environment, but I am afraid that those with small accounts are losing it, so make sure to trade micro lots if your account is small. You need to protect your money with risk management!

You are probably wondering what those reversals mean; “Are bears on EURUSD done and we go impulsively up, Or, is this just another big corrective rally?” Well, put it this way; the big trend is down, the rally from the low is not impulsive, and also what are the chances to be correct with calling a multi-year low? I guess chances for that are very small, so I suspect that the rally on EURUSD is just corrective move as part of a downtrend. Please make sure to check our latest daily charts.

With that said, I am looking at EURUSD as an incomplete corrective bounce from the lows. I will be tracking a three wave rally with subwave (B) now underway, so I suspect the pair will move through 1.1050 with a “failure” breakout before turning down. I am pretty sure that a lot of traders loaded new shorts after the spike was visible, so would not be surprised to see those levels hit once more before we go down again.

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!

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