Elliott Wave View: EUR/USD Can Bounce Soon

Elliott Wave Forecast Team ElliottWave-Forecast.com

Short term Elliott wave view in EURUSD suggests the cycle from December 31, 2019 high is unfolding as an impulse wave. Down from December 31, wave (1) ended at 1.0991 low and the bounce in wave (2) ended at 1.1097 high. The pair continues to the downside and wave (3) is still in progress. Wave 1 of (3) ended at 1.1034 low. The bounce in wave 2 ended at 1.1066 high. From there, pair resumed lower in wave 3 towards 1.0890 low. Wave 4 bounce ended at 1.0926 high. The final wave 5 of (3) remains in progress with internal subdivision of an impulse.

Wave ((i)) of 5 ended at 1.0863 low and the bounce in wave ((ii)) ended at 1.0889 high. From there, it extended lower in wave ((iii)) and ended at 1.0826 low. Wave ((iv)) then ended at 1.0861 high. The pair is extending lower in wave ((v)) of 5 right now and can see a few more push lower to end wave (3). After that, a 3 waves bounce in wave (4) can be seen. However, as far as the pivot at 1.1097 high stays intact, expect the bounce in 3,7, or 11 swing to fail and sellers to appear for more downside.

EUR/USD 1 Hour Elliott Wave Chart

EUR/USD Elliott Wave Video

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

EUR/USD: US Dollar to remain pressured until uncertainty fog dissipates

Unimpressive European Central Bank left monetary policy unchanged for the fifth consecutive meeting. The United States first-tier employment and inflation data is scheduled for the second week of February. EUR/USD battles to remain afloat above 1.1800, sellers moving to the sidelines.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold: Volatility persists in commodity space

After losing more than 8% to end the previous week, Gold remained under heavy selling pressure on Monday and dropped toward $4,400. Although XAU/USD staged a decisive rebound afterward, it failed to stabilize above $5,000. The US economic calendar will feature Nonfarm Payrolls and Consumer Price Index data for January, which could influence the market pricing of the Federal Reserve’s policy outlook and impact Gold’s performance.

Week ahead: US NFP and CPI data to shake Fed cut bets, Japan election looms

US NFP and CPI data awaited after Warsh’s nomination as Fed chief. Yen traders lock gaze on Sunday’s snap election. UK and Eurozone Q4 GDP data also on the agenda. China CPI and PPI could reveal more weakness in domestic demand.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.