Elliott Wave Analysis: Bears Taking Over The EURUSD
Elliott Wave Analysis: Bears Taking Over The EURUSD
On EURUSD we see price trapped in a big consolidation pattern, a triangle that seems to be over as of recent bearish price movement. It’s a five wave correction, a continuation pattern that can after its completion push price lower into a strong decline. At the moment we see price trading beneath the lower red trendline, suggesting that the final wave E is finished and now more weakness may come in play. If that is the case then lower levels will follow and sometime this week a break beneath the wave swing D may happen, which will be the second confirming price action of the higher degree correction being finished.
EURUSD, Daily
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Regarding the lower time frame, we see that EURUSD fell sharply the previous week beneath the channel support line connected from 1.0190 so we see market moving into a bearish mode now, ideally at the start of an impulsive decline shown on the 4h chart. As such, pair can be underway to 1.0910 June low and much lower after that as big black wave IV triangle can be coming to an end. For now short-term invalidation level is at 1.1103; as long this price is not breached we are looking down, with more weakness ahead later this week after wave 4) bounce.
EURUSD, 4H
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