EUR Could Enjoy USD Index Weakness (Elliott Wave Analysis)

EURUSD broke higher last week as expected and closed above the important 1.3400 resistance level after a nice pull-back down to 1.3250. The current break is just another confirmation of our bullish view for an impulsive wave 3) rise in wave (C).

As such, we expect even higher levels now towards the 1.3640/1.3700 next week while market trades above 1.3250 support. Meanwhile any pull-backs on a lower time frame should prove corrective.

The reason why we think that EURUSD is headed much higher is USD Index which is still trading above its 2012 September low.

A break of that level should occur as recovery since then is clearly corrective in nature so movement should be fully retraced which will pressure the USD and lift the EUR.

In fact we are tracking a triangle pattern, which is a continuation pattern in our case that means break lower.

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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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