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EURUSD Elliott Wave Analysis: Corrective Rally

By: Gregor Horvat | Monday, January 13, 2014

EURUSD 4h

EURUSD moved higher on Friday which should not be a surprise as we know that after every five waves correction follows. We can count impulse down in red wave 1) so current upward reaction is normal. We are tracking wave 2) that represents a contra-trend reaction that should be made by three legs. We will be tracking A-B-C waves up to 1.3700-1.3750 region from where pair could turn down again, back to 1.3543. Critical, or invalidation level remains at 1.3891; as long it will hold, trend is down.

EUR/USD 4-Hour Chart


EURUSD 1h

Regarding the USD bullish view our primary pairs to track are still USDCHF, GBPUSD and EURUSD. However, based on the latest structure the USD may not turn immediately higher against the EUR as we suspect that pair is in the middle of an A-B-C retracement now. We expect wave B down to 1.3600 and then another leg above 1.3700 before pair may turn south.

EUR/USD 1-Hour Chart

 


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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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