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Elliott Wave Analysis: EUR/USD Eyeing Lower Levels; 1.0385 In View

Published 02/24/2017, 02:39 AM
Updated 07/09/2023, 06:31 AM

On the 4h chart of EUR/USD, we are observing a nice bearish reversal taking place, with price turning down from 1.0828 where we think that wave 4) found a top. Reason for a bearish view is a break below the trendline support and push beneath 1.0589 swing which opens door for much lower levels in impulsive manner.

At the moment we see price making an intraday rally, ideally into a minor blue wave ii, after some resistance was found for the previous black wave 2 at the 1.0678 level. If we are on the right track, then more weakness may follow on the pair and ideally the 1.0385 region may be in view.

That said, if price continues to rise from current levels, then we could be in for a more complex correction in black wave 2, and recent weakness that we labeled as blue wave i, may be only sub-wave b.

EUR/USD, 4H
EUR/USD 4-Hour Chart

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