Elliott Waves on EUR/USD shows resistance at 1.0550 – 1.0600 [Video]

Gregor Horvat Wavetraders

After a sharp drop at the end of last week, EURUSD is now attempting to stabilize. We can observe five waves up with a Sunday gap in the middle, which was eventually filled during Asian trading hours. In my opinion, this gap could act as a support level and lead to further upside, especially if the current move is a temporary wave "b" drop of a corrective rally.

Further gains are expected then in the short-term only. Keep in mind that the higher-degree trend remains bearish, and the upside could be limited once wave C unfolds. Strong resistance is seen at 1.0550–1.0610, where the whole fourth-wave rally could come to an end. Euro can turn bullish only if we see recovery above 1.0764.

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Author

Gregor Horvat

Wavetraders

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

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