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Limited Upside For EURUSD due to Bullish Pattern On

Today we will look at German Bunds and uses the help of this market to figure out the next possible move for EURUSD.

On the 4h chart of German Bund (Mar 2014) we see a triangle in progress that suggests higher prices once the pattern is complete. A triangle is a continuation move: a five wave pattern labeled with A-B-C-D-E subwaves, where each leg consists of three legs.

So far this looks quite nice so we can assume that the market will turn up after a wave E pullback down to the 143.40-143.80 ideal support area.

The big question is how will this impact the EURUSD?!

Well, on the overlay chart we see a negative correlation between EURUSD and BUNDS, so if BUNDS will continue higher, then EURUSD should find resistance and turn bearish. We see technical resistance on EURUSD coming in around 1.3800.

German Bunds (Mar 2014) 4h

bund feb 26 2014 intra technical forrex Elliott Wave Analysis Chart

EURUSD vs Bunds 2h

eur vs bund technical forrex Elliott Wave Analysis Chart

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!