Elliott Wave View: EURUSD looking to end a diagonal [Video]

Elliott Wave Forecast Team ElliottWave-Forecast.com

Short term Elliott Wave View in EURUSD suggests the rally from March 31, 2021 low is unfolding as a 5 waves nesting impulse Elliott wave structure. Up from March 31 low, wave (1) ended at 1.215 and pullback in wave (2) ended at 1.1984. Wave (3) is now in progress with subdivision as 5 waves in lesser degree. Up from wave (2) low, wave ((i)) ended at 1.2181, and pullback in wave ((ii)) ended at 1.205. Wave ((iii)) ended at 1.224, and wave ((iv)) dips ended at 1.2158.

Near term, expect 1 more push higher above wave ((iii)) to end wave ((v)). This last move higher should also complete wave 1 of (3) as a leading diagonal. Afterwards, pair should pullback in wave 2 to correct cycle from May 5 low before pair resumes the rally higher. As far as wave (2) low pivot at 1.1984 remains intact during wave 2 pullback, expect dips to find support in 3, 7, or 11 swing and pair to extend to the upside. Potential target for wave (3) higher is 100% – 161.8% Fibonacci extension of wave (1). That area comes at 1.242 – 1.27.

EURUSD 1 Hour Elliott Wave Chart

EURUSD 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.