EUR/USD Rally From 1.2750 Is Looking Corrective – Elliott

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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

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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 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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