FX Majors Look For Correction: Elliott Wave Analysis

By: Gregor Horvat | Thu, May 22, 2014
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EURUSD

EURUSD fell to a new swing low but that does not mean that wave (b) correction is already completed. Corrections after such a sharp fall liek we have seen from 1.3992 are usually more complex and they will tend to retrace for around 38.2%. That's now the case on the EURUSD yet, so we assume that wave (b) is still unfolding as irregular correction. Ideally, we will see an expanded flat with 1.3770 yet to come before market turns down for (c).

EURUSD 4h Elliott Wave Analysis
EURUSD 4h Elliott Wave Analysis


GBPUSD

GBPUSD has recovered nicely in the last couple of days in three waves after a completed five waves of decline from 1.6995 or 1.6728. Pair reached our mentioned levels around 1.6900 where current recovery may slows down. For a bearish confirmation we need a reversal back to 1.6800 that will make room for further weakness down in wave 3)/C) towards 1.6600.

GBPUSD 4h Elliott Wave Analysis
GBPUSD 4h Elliott Wave Analysis


USDCHF

USDCHF spiked above 0.8952 last week but upside seems to be limited around 0.9860. In fact, we are tracking a flat correction of a larger degree with wave C now close to completion. From minimum perspective view, even if pair has turned bullish on May 08 we still expect three waves down from around current levels, so ideally price will retrace back to 0.8840/70 zone next week.

USDCHF 4h Elliott Wave Analysis
USDCHF 4h Elliott Wave Analysis


USDJPY

USDJPY reversed sharply to the upside yesterday from around 100.80 where we think that pair found a temporary low. The reason is slow and overlaping price action at the late stage of recent declines that looks like an ending diagonal placed in wave (c) position, final leg of a three wave fall from 104.11. Therefore, we suspect that USDJPY is trapped in some bigger corrective price action and that pair will continue sideways or even slightly higher in the next couple of days.

USDJPY
USDJPY 4h Elliott Wave Analysis

 


 

Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, 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 www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple 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.

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