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Interestingly, EURUSD is up in the last 24 hours and GBPUSD is down following the ECB and BoE rates decisions. In fact, we warned about this negative correlation which usually occurs on such important dates. Obviously, policies from bank to bank are different and this causes different directions on pairs.

EURUSD recovered to a new swing high which looks like a wave c) in (iv) that still can reach the former wave iv) at 1.344 to complete a contra-trend reaction. We will be looking down again next week.

EURUSD 1h Elliott Wave Analysis

EURUSD August 8 2014 Elliott Wave analysis for currency trading

On GBPUSD we got a break-down from a triangle yesterday where 1.6820 was a key point for a move to a new low. we see prices now in a fifth wave, the final leg within a larger impulsive decline so sooner or later the pair will find support and turn up for a three wave recovery. However, this may occur after touching the 1.6783 or 1.6748 levels. In the meantime keep an eye on 1.6859: a move above it will suggest that the rally is already in play.

GBPUSD 1h Elliott Wave Analysis  

GBPUSD August 8 2014 Elliott Wave analysis for currency trading