EUR/USD could fall below 1.24; GBP/USD upwards correction likely

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

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

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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