# EUR/USD forecasting the rally after Elliott Wave zig zag pattern

In this technical blog we’re going to take a quick look at the Elliott Wave charts of EURUSD, published in members area of the website.  As our members know, recently EURUSD made a pull back that has had a form of Elliott Wave Zig Zag pattern.  We expected the pair to find buyers at the extreme zone from the 01/26 peak. In the further text we are going to explain the Elliott Wave Pattern and the forecast

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A  or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and  ideal retracements.

At the chart below we can see what Elliott Wave Zig Zag pattern looks like in real market.

## EUR/USD H1 London update 01.31.2023

EURUSD is giving us pull back against the 1.048 low. Correction looks incomplete at the moment. First leg has a form of 5 waves, so we assume pull back is unfolding as Elliott Wave Zig Zag Pattern.  That means both ((a)) and ((c)) legs should have a form of 5 waves structure.  At this stage ((c)) leg is still missing another wave down . We are calling for another marginal push lower toward marked reversal area: 1.0820-1.0763 ( buyers zone). That area we got by measuring extreme zone with Fibo Extension tool ((a)) – ((b)). At that zone sellers will be taking profits and we expect buyers to appear for further upside toward new highs ideally.

### EUR/USD H1 London update 02.01.2023

The pair is giving us nice reaction from the marked zone and we count 2 red red pull back completed at 1.0799 low. Now, as far as the price holds above that low we expect to see further extension higher  and break above 1 red high : 01/26 to confirm next leg up is in progress.

### EUR/USD H1 London update 02.02.2023

The pair made further rally as expected. We got break of  1 red ( 01/26) peak, confirming next leg up is in progress. EURUSD can remain supported in near term as far as 1.0800 pivot holds. It should ideally keep finding buyers in 3,7,11 swings.

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