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Markets are very slow ahead of ECB and BoE. We see both EUR and GBP slightly moving up, away from yesterday’s lows but the recovery is not in five waves yet, so therefore the move can be part of a downtrend. Keep in mind that the larger trend is still down on both pairs.

On EURUSD we see a nice five wave decline from 1.2576 which is an impulse so we will continue to look down especially as the rally from the lows already has a corrective look because of three waves. Ideally the market will break beneath 1.2450 today and possibly accelerate much lower. The invalidation level is at 1.2576; as long this one holds, the trend is down.

EURUSD 30min Elliott Wave Analysis

EURUSD Elliott Wave Analysis November 6 2014 technical outlook currency trading forex

On GBPUSD, the structure is slightly different but still can be bearish for the pair because of a five wave fall from 1.6180. Ideally the pair is now in a three wave (a)-(b)-(c) rally that can stop at the 1.6020/40 resistance zone.

GBPUSD 1h Elliott Wave Analysis

gbpusd Elliott Wave Analysis November 6 2014 technical outlook currency trading forex