Home 1.22 could provide support in EUR/USD; 1.5580 in GBP/USD:
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1.22 could provide support in EUR/USD; 1.5580 in GBP/USD:

The USD finished the week in a strong manner on Friday after a very good NFP report. We have seen a new leg down on EURUSD and other pairs as well. GBPUSD also finally broke to the downside.

However, the question is how much room is there left within USD strength? Keep in mind that we are tracking big fifth waves across the board, so sooner or later these trends could change. It will be interesting to see what happens when the USD index will get above those 2009 highs. However, for now we need to focus on short-term swings.

On EURUSD we see five waves down on the 15min chart so support could be near, but for now, the pair is still not bottoming. However 1.2200 definitely could be support for a next bounce in price, even if this is just corrective.

EURUSD Elliott Wave Analysis December 8 2014 technical chart for currency trading foreign exchange

EURUSD 15min Elliott Wave Analysis

GBPUSD is also in an impulsive downtrend, with room for more declines in the short-term as wave 5 is still not in five subwave, so current the intraday leg to 1.5580 could be fourth wave, as part of a downtrend.

GBPUSD 1h Elliott Wave Analysis

GBPUSD Elliott Wave Analysis December 8 2014 technical chart for currency trading foreign exchange

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!