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EUR/USD Under Pressure, Trading Towards 1.39

In just 24 hours Eur/Usd has broken through two very important trend lines, that will send this pair into much deeper levels. A key reversal level for this move occurred at 1.45, where a recent corrective pull-back labelled as a black wave 2/B has topped out. You will notice, that in late NY trade yesterday, the Euro fell below the lowest base channel line which in most cases confirms a third wave move of an impulsive structure.

Guest post by Gregor Horvat

So, if we are correct, then next targets are at 1.39, near 161.8% Fibonacci extension level, which is the most typical Fibo target for third wave.

Trend remains bearish as long as the market trades below the highest trend line resistance of a base channel!

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Gregor Horvat

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!