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EURUSD reversed higher few weeks back from around the 1.2750 level, but the recovery since early April still has a corrective look.

With that said, we think that the move is a complex correction, probably a flat one and that the larger trend will continue lower, especially if we consider a five wave decline from 1.3700 and the start of the year.

If we are correct then the current bullish leg should stop somewhere around current 1.3400 -1.3450 resistance area.

4496eurusd_aug_18_2013_daily Elliott Wave Analysis August 13 2013 technical trading

 

On the daily chart we are also still observing the idea of a Head and Shoulders pattern which if correct, should be near completion based on the parallel trend-lines.

This pattern is matching nicely with our Elliott Wave Count, but we still need some confirming price action to make sure that EURUSD is going south. With that said, we would love to see an impulsive fall back to 1.3000 level before bearish reversal can be confirmed!

On the other-hand, we will have to change the outlook for the EURUSD if pair will continnuat higher in the rest of the year, towards 1.3700.

eurusd hs Aug 18 2013 Daily forex trading elliott wave analysis