EURUSD Still In A Triangle

By: Gregor Horvat | Wed, Mar 9, 2016
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EURUSD has turned up last week after declining down to 1.0830 level since mid of February. Pair closed at 1.1000 on Friday, which suggests that EURUSD found a temporary swing low and that wave D-circled is finished. If that is the case then we can expect more sideways price action to the upside as we will look for a three wave rise in wave E-circled that can retrace even back to the upper trendline before real weakness comes in play, for wave V down.

EURUSD, Daily

EURUSD Daily Elliott Wave Chart

On the lower time frame, EURUSD is turning to the upside after it broke out of a downward channel which is an important indication of a completed decline from 1.1377 high that we labeled it as wave D. Notice that bounce from recent low is quite strong, so we would not be surprised if price will continue higher in days ahead into wave E, final leg of a big triangle which can reach even 1.1100-1.1200 area where we would expect a new but very important bearish turn sometime this month.

EURUSD, 4H

EURUSD 4-Hour Elliott Wave Chart

A Triangle is a common 5 wave pattern labeled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3.

A Basic Triangle Pattern :

Idealized Basic Triangle Pattern

 


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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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