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The USD broke higher last week after the end of QE program in the US. At the same time, stocks turned back to the highs while metals and commodities turned bearish. Based on the pattern we see, we expect moves into the same direction this week.

The USD rally even accelerated during Asian session today after the gap down on EURUSD from around 1.2530. As such, our view remains bearish on EUR as those gaps can turn into resistance once they are filled. So ideally we will see a continuation lower later today and in this week, to beneath 1.2400. Invalidation level is at 1.2631.

EURUSD 1h Elliott Wave Analysis

EURUSD November 3 technical Elliott Wave analysis for currency foreign exchange trading

We also expect more weakness in GBPUSD during this week after a five wave decline from around 1.6180 last week. We see a correction now forming since Thursday that can even be a flat pattern. In that case wave (c) could rally back to 1.6037 resistance where a new bearish turning point could occur. We would change view only if the pair will go back above 1.6100.

GBPUSD 1h Elliott Wave Analysis

GBPUSD November 3 technical Elliott Wave analysis for currency foreign exchange trading