EUR/USD Elliott Wave technical analysis [Video]

EURUSD Elliott Wave Analysis - Trading Lounge.

Euro/ U.S. Dollar (EURUSD) Daily Chart Analysis.

EUR/USD Elliott Wave technical analysis

• Function: Counter Trend.

• Mode: Impulsive.

• Structure: Navy Blue Wave 3.

• Position: Gray Wave C.

• Direction (next higher degrees): Navy Blue Wave 4.

• Details: Navy Blue Wave 2 appears completed; Navy Blue Wave 3 is currently active.

• Wave cancellation invalidation level: 1.08263.

Analysis overview

The EURUSD Elliott Wave analysis on the daily chart provided by Trading Lounge identifies a counter-trend movement in the Euro against the U.S. Dollar. This analysis highlights the ongoing development of navy blue wave 3, which is part of the impulsive wave structure and positioned as gray wave C. This setup suggests a potential counter-trend within the broader market context.

While this is classified as a counter-trend scenario, the impulsive nature of navy blue wave 3 indicates ongoing momentum, with price fluctuations anticipated as this wave progresses.

Wave details

• Navy Blue Wave 2 appears to have completed its formation.

• The development of Navy Blue Wave 3, a typical strong wave in Elliott Wave theory, is now in motion.

• Despite its counter-trend classification, wave 3 often displays robust and pronounced activity, which may lead to short-term downward momentum within the overall corrective pattern.

Key level: Invalidation threshold.

An invalidation level is identified at 1.08263, serving as a pivotal reference point for traders. If the EURUSD price reaches or drops below this threshold:

• The current wave structure may be deemed invalid.

• A break below this level could signal the weakening of the projected counter-trend, necessitating a re-evaluation of the wave pattern and trend outlook.

This threshold is a crucial marker for confirming the integrity of the ongoing counter-trend setup.

Summary and recommendations

The analysis projects a counter-trend outlook for EURUSD, with navy blue wave 3 actively evolving within the impulsive structure of gray wave C. Traders should monitor price action closely concerning the invalidation level at 1.08263, as any break below this level could challenge the current structure. Observing this key point is essential for validating the counter-trend wave framework.

 

Euro/ U.S. Dollar (EURUSD) 4-Hour Chart Analysis.

EUR/USD Elliott Wave technical analysis

• Function: Bearish Trend.

• Mode: Impulsive.

• Structure: Orange Wave 3.

• Position: Navy Blue Wave 3.

• Direction (next higher degrees): Orange Wave 4.

• Details: Orange wave 2 is completed; orange wave 3 within navy blue wave 3 is active.

• Wave cancellation invalidation level: 1.08263.

Analysis overview

The EURUSD Elliott Wave analysis on the 4-hour chart from Trading Lounge identifies a bearish trend in the Euro against the U.S. Dollar. The impulsive wave structure highlights the active development of orange wave 3, situated within the larger navy blue wave 3. This configuration underscores sustained downward momentum in EURUSD and supports a bearish outlook as the wave structure progresses.

Wave details

• The completion of orange wave 2 has set the stage for the continuation of orange wave 3 within navy blue wave 3.

• Within the Elliott Wave framework, wave 3 typically signifies a strong and directional movement in an impulsive sequence, reinforcing the bearish outlook.

• The ongoing positioning within navy blue wave 3 further supports expectations for continued short-term downward movement.

Key Level: Invalidation Threshold.

A critical invalidation level is identified at 1.08263. If EURUSD reaches or exceeds this level:

• The existing wave structure would be invalidated.

• A rise above this threshold would signal a potential weakening of the bearish trend and necessitate a re-evaluation of the wave structure.

This invalidation level is vital for confirming the integrity of the ongoing downtrend. Any movement above it could indicate a shift or potential reversal in the trend.

Summary and recommendations

The analysis reinforces a bearish outlook for EURUSD, with orange wave 3 advancing within navy blue wave 3 to maintain downward momentum. Traders should closely monitor price action concerning the invalidation level at 1.08263, as a move above this level could challenge the current bearish structure. This threshold is a key point for validating the continuation of the ongoing bearish pattern.

 

Technical analyst: Malik Awais.

EUR/USD Elliott Wave technical analysis [Video]