EURUSD: Bearish Price Action in Progress

EURUSD fell sharply lower in the last few weeks with an accelerating price action confirming a continuation of a downtrend. We see a huge possibility for wave (3) in progress that is part of a big five wave move within wave V that began unfolding at the end of September, away from 1.1700. Based on current very strong bearish momentum, we may see an extension towards 1.0400 this year, where we see Fibonacci projected levels for wave (3). As long as price trades stays beneath 1.1082, the trend is down.

EURUSD, Daily

On the lower time frame, EURUSD is at the lows but it’s moving very slowly so we think that a price action is in wave 5) of an extended blue wave (3). However, there is room for a move down to the 1.0480-1.0500 area before we may see a bounce. Ideally, market will recover at the start of December with three waves if we consider that wave 5) can be an ending diagonal which suggests that the current bearish leg is nearing completion.

EURUSD, 4H

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!

View all posts by Gregor Horvat