EURUSD: Bearish Reversal Is Unfolding-Elliott Wave Analysis


EURUSD has been trading higher last week and reached highs around the 1.3400 region from where the pair reversed impulsively, and this suggests that the highs are in. As such, a larger ending diagonal appears complete and is now pointing for a weaker EURUSD.

We will be looking for a sizable decline once 1.3180 support is taken out. Why is 1.3180 support important? Because that’s the swing low of wave four, and when the floor of wave four is broken this means that the trend has changed and that bearish waves are underway.

eurusd AUG 12 2013 4h

What is an Ending Diagonal?

ending diagonal

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far and too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

  • The structure is 3-3-3-3-3
  • A wedge shape within two converging lines
  • Wave 4 must trade into a territory of a wave 1
  • It appears primarily in the fifth wave position, in the C wave position of A-B- C and in double or triple threes as the final “C” wave
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About Author

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 His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on 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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