Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

EUR/USD: May Be Heading Below 1.04 Level

Published 02/01/2017, 11:49 AM
Updated 07/09/2023, 06:31 AM


According Elliot Wave Principle EUR/USD either reached the top of the wave 4 and it is currently at the beginning of the wave 5 which is supposed to take the currency pair bellow the level of 1.04 where the wave 5 is supposed to finish and complete the 5 waves impulse pattern.

It could be also possible the wave 4 has not been completed yet and the competition of the wave 4 take the currency pair little bit higher nevertheless this should not invalidate expected move down.


EUR/USD 4 Hour Chart: Possibility 1


Alternatively the wave 4 has not been completed yet and the pair is in the wave B of the wave 4.


This doesn't change the fact the pair is currently heading down and it should reach at least 1.05 level nevertheless move below 1.04 is more likely according the Elliot.
It could be also possible the wave B has not been completed yet and the completion of the wave A take the currency pair little bit higher nevertheless this should not invalidate expected move down.


EUR/USD 4 Hour Chart: Possibility 2

The second option is hypothetically more likely as the as the wave 4 is supposed to take more time to complete especially when the wave 2 didn't take too long.
In this case the pair is supposed to stay in range between 1.03 -1.08 for a about 3-6 weeks.


We have already sold EUR/USD at 1.0750 level and we are looking to take profit somewhere between 1.05-1.03 levels.


We never guide our trading decision based on technical analysis only nevertheless the fundamentals seems to be pointing at the same conclusion as our technical analysis: The pair is supposed to stay in range 1.08 – 1.03 in the next several weeks.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.