EUR/USD Trapped In Correction Within Downtrend; 1.2800 Next!

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We expect further weakness on Eur/Usd after a fall in the past week with and type of a price action which suggests that decline from 1.3550 is impulsive.

With this being said, our bias is very bearish now within impulsive structure, and will look for more weakness ideally into 1.28/1.27 zone, while 1.3280 critical level holds! But already a break of the upper channel resistance line would threaten the bearish outlook.

However, be aware that is still not clear if pair is falling in wave 3) or maybe just in wave C). And the reason is price, which is still trapped within two parallel trend-lines.

But even if this is C), we still need five waves from wave 2)/B) peak, so in the short-term Euro should lose some value against the buck.

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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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