Weekly waves: EUR/USD, GBP/USD and Bitcoin

Our weekly Elliott Wave analysis reviews the EUR/USD daily chart, the GBP/USD weekly chart, and the Bitcoin crypto currency daily chart.
The EUR/USD made a new low but price action was finally weaker, which is a first indication that a larger bullish retracement could take place.
Bitcoin (BTC/USD) is testing the previous bottom and the main question will be whether price action will bounce or break.

Chris Svorcik Elite CurrenSea

EUR/USD retracement towards 1.05 and 1.08

The EUR/USD bullish divergence has appeared between the two recent daily bottoms (green lines on price chart and MACD).
The divergence pattern indicates a potential bullish reversal or retracement.
Because price action is probably in wave 3 (gray), we expect a shallow and choppy correction within wave 4 (gray) and not a larger reversal.
An ABC (yellow) pattern could unfold within a larger wave A (pink) of wave 4 (gray).
The bullish targets are the 23.6% Fibonacci retracement level near 1.0450 and 38.2% Fib near 1.08 of the wave 4 (gray).
The downtrend within wave 5 (gray) could aim at 0.9750, 0.95, and 0.925.

GBP/USD bullish Pullback to 1.2250

The GBP/USD is showing a massive bearish impulse but a strong support zone (blue) is now in its way:

The GBP/USD is expected to build a bullish retracement, just like the EUR/USD.
Considering the strong bearish momentum, we estimate that price action is probably in a wave 3 (orange).
This remains valid as long as the bullish retracement is not very impulsive and does not break above 1.25 and especially above 1.28 and 1.30.
A bullish ABC (green) is expected to complete the wave 4 (orange) around 1.2250.
The downtrend within wave 5 (orange) of wave 3 (yellow) could take price to 1.15 and perhaps 1.14 and 1.1250.

BTC/USD bullish bounce aims at $30k

BTC/USD is expected to make a bullish bounce according to our Elliott Wave analysis.
The current bearish price action is probably a wave B (orange).
This means that a bullish bounce should take price higher within a wave C (orange).
A larger ABC (orange) should complete a larger wave W (yellow) of a WXY complex correction (yellow).
The main bullish target is the 23.6% Fibonacci level around $30k.
A bearish bounce is expected at this strong resistance zone (red box).
After a bearish retracement in wave X (yellow), a bullish bounce should take price up towards the 38.2% Fibonacci level in a wave Y (yellow).

The analysis has been done with the indicators and template from the SWAT method simple wave analysis and trading. For more daily technical and wave analysis and updates, sign-up to our newsletter

Author

Chris Svorcik

Elite CurrenSea

Experience Chris Svorcik has co-founded Elite CurrenSea in 2014 together with Nenad Kerkez, aka Tarantula FX. Chris is a technical analyst, wave analyst, trader, writer, educator, webinar speaker, and seminar speaker of the financial markets.

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