EURUSD Elliott Wave Analysis: Bearish Wave

By: Gregor Horvat | Fri, Jan 31, 2014
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EURUSD has turned bearish at the start of January from 1.3900 spike high which we assumed it represents final part of a bullish trend. From there market fell sharply lower almost 400 pips so we assume that pair has completed an ending diagonal. However, a key for a breakdown would be move through the red wave 4) swing low that is placed around 1.3300 figure, still far away from current levels.

EURUSD Daily Elliott Wave Analysis

EUR/USD Daily Elliott Wave Analysis Chart


EURUSD 4h

As expected, the EURUSD has turned down from above 1.3700 area where we labeled end of an expanded flat formation that now shows signs of completion after sharp fall down to 1.3530. Current decline is showing signs of an impulsive pattern so we suspect that EURUSD is heading south. Trend is down as long as 1.3683 remains in place.

EURUSD 4h Elliott Wave Analysis

EUR/USD 4-Hour Elliott Wave Analysis Chart


Elliott Wave Education: Flat Pattern

A Flat is a three-wave pattern labeled A-B-C that generally moves sideways. It is corrective, counter-trend and is a very common Elliott Wave pattern.

Expanded Flat

Elliott Wave Idealized Expanded Flat Chart

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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