EUR/USD: Correction or Something Bigger?

Eur/Usd reached new lows in recent sessions, mostly driven by lower stocks prices. We see evidence of a deeper price action on Eur/Usd, especially since the pair also broke through the lower support line of a previous bullish channel.

As you can see on the chart, the pair is breaking into a third wave of decline, labelled as a red wave 3)/C). As such, we still dont know if decline from the highs is just a correction or start of something bigger. Well, fall down to 1.3700 region will definitely suggest that we are in impulsive sequence here, which in this case means more downside for Eur/Usd.

Guest post by Gregor Horvat

Today, traders should also pay attention on a weekly and daily close price, which may provide much more weakness in a coming week if the blue support line connected from start of 2011 shown on a daily chart is broken.

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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!

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