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In their latest client note, the analysts at Goldman Sachs offer a detailed technical outlook on the EUR/USD pair, based on the Elliot waves analysis.

Key Quotes:

“1.1321 level is derived from an equality target taken off the Nov. 20th interim high. Meaning that if it holds support, there’s a good chance the market turned back into its recent uptrend, extending its rally towards 1.1575-1.1587 at least; includes 61.8% retrace and an ABC target off the November low.

Alternatively, breaking ~1.13 increases the risk of continuing towards the lows. Either way, the market is still in a broad corrective process, implying messy/difficult price action for a while longer. Haven’t seen enough evidence of an impulsive rise or fall; certainly not enough to confidently chase either direction.

View: Still broadly corrective. Watch for support at 1.1321. If held, the focus would then shift up to 1.1575- 1.1587. Setup weakens below 1.13.”