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The FX market is slow and as one client said in our chat room, it may not be a bad idea to take a day off as price action can be slow until tomorrow’s FOMC statement. Well, pairs are still in corrective phase from where we expect a break in favor of the USD.

On EURUSD we see a slow and overlapping move higher within a trading channel which has the characteristics of a corrective price action. We are looking at a double zigzag with wave c) now underway to 1.2740 where bullish swings can be limited.

EURUSD 1h Elliott Wave Analysis

EURUSD Elliott Wave analysis October 28 2014 technical overview and forecast

USD is also showing a bullish structure against the Japanese yen as decline from 108.30 unfolded only in three waves so far. In fact, there is an ending diagonal in wave c that occurs at the end of the move, so uptrend continuation may follow in sessions ahead. We expect a break above 108.30 in this week.

USDJPY 30min Elliott Wave Analysis

USDJPY Elliott Wave analysis October 28 2014 technical overview and forecast