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Staying bullish on USD against EUR and GBP – Elliott

The USD turned up on Friday after much better than expected NFP figures and revision up for August. So, both numbers were supportive for the USD that rose strongly across the board.

Technically speaking, we were looking for higher USD. The EURUSD hits 1.2500 while GBPUSD breaks beneath 1.6000 level. There are some chances that USD pairs are in fifth waves and that corrections will come, but at the moment is important to stay in bullish mode with the buck and don’t be surprised by any extensions. With that in mind, even if EURUSD can be in fifth wave, it’s important not to turn bullish until we see five waves from the low. So for, I would stay “do or die” level for EURUSD down here. Let’s wait and see what happens.

EURUSD Elliott Wave Analysis October 6 2014 technical outlook currency trading

EURUSD 1h Elliott Wave Analysis

The one thing that also matters when it comes to trading is to focus on clear patterns across different markets. Per example, GBPUSD has a better bearish structure than EURUSD at the moment, so if we want to stay with the USD trend, then you could pay more attention to cable rather than EUR.

On GBPUSD we have seen an extension down from 1.6150 that we see as a completed wave iii) so the current bounce and slow bounce is probably a fourth wave that can stop around the 1.6000 psychological level. Be aware of further weakness in session ahead.

Elliott Wave Analysis October 6 2014 technical outlook currency trading GBPUSD
GBPUSD 1h Elliott Wave Analysis

Gregor Horvat

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!