Big Complex Correction On EURUSD Seems Completed; More Weakness Underway

Gregor Horvat Wavetraders

EURUSD fell beneath an important trendline support this month that indicates a completed Elliott Wave triangle placed in big black wave four. If that's the case then more weakness can be seen on EURUSD till the end of the year, especially if we consider that on the 4h chart decline is looking impulsive down to 1.0850 area. It's a five wave move that represents a bearish trend. However, nothing moves in straight lines so we need to be aware of a new corrective bounce, ideally in three waves back to 1.1038 resistance. But keep in mind that any pullbacks will be only temporary and short-lived patterns.

EURUSD, 4H

Triangles are overlapping five wave affairs that subdivide into 3-3-3-3-3. They appear to reflect a balance of forces, causing a sideways movement that is usually associated with decreasing volume and volatility.

Basic Triangle Pattern:

Interested in EUR/USD technicals? Check out the key levels

1. R3 1.0992
2. R2 1.0968
3. R1 1.0932
PP 1.0907
1. S1 1.0871
2. S2 1.0847
3. S3 1.0811

Author

Gregor Horvat

Wavetraders

Experience Grega is based in Slovenia and has been in the Forex market since 2003.

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