What’s next for EUR/USD and GBP/USD? Elliott Wave Analysis

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The USD has extended its gains from last week with EURUSD touching 1.3116. CHF and JPY were also weak against the buck, while AUD, CAD and GBP made some recovery.

So generally speaking, we have a mixed USD picture, but larger trends are clear; The US dollar is in bullish mode so any pullbacks within this leg will be corrective and temporary.

On GBPUSD for example we have seen a nice, solid recovery from the lows. This is becoming a complex pattern. I am looking at a double zigzag in wave 4) that may reach levels around 1.6650-1.6680 before the downtrend may continue again. 1.6560 is a key level for a coming weakness down into wave 5).

GBPUSD 1h Elliott Wave Analysis

GBPUSD Elliott Wave Analysis September 2014 technical trading

The EUR is much weaker than GBP, as EURUSD is already in wave five, but the decline from 1.3219 should unfold in five waves, so be aware of more downside in this week, but we however see it in very late stages of impulsive weakness so traders may think twice before considering shorts.

EURUSD 1h Elliott Wave Analysis

EURUSD Elliott Wave Analysis September 2014 technical trading

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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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