EURUSD Elliott Wave Analysis Trading Lounge.
Euro/U.S. Dollar (EURUSD) Day Chart.
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
The EURUSD daily chart demonstrates an Elliott Wave analysis, identifying a bearish trend in progress. The current wave structure is categorized as orange wave 3, forming part of a broader impulsive pattern within navy blue wave 3.
The analysis indicates that orange wave 2 has likely concluded, paving the way for the continuation of orange wave 3 within the navy blue wave 3 framework. This movement is consistent with Elliott Wave Theory principles, which aim to identify recurring wave patterns for predicting market behaviors.
The current wave sequence suggests persistent bearish momentum. Once orange wave 3 concludes, the next anticipated movement will transition into orange wave 4.
Key levels
-
Wave Cancel Invalidation Level: 1.93575
If the price surpasses this invalidation level, the wave count will need revision, as it would imply a deviation from the expected pattern.
Trading insights
This analysis provides crucial insights into market dynamics, emphasizing the impulsive characteristics of the ongoing wave structure. The bearish outlook suggests a continuation of downward price movement, offering traders a structured framework to anticipate market trends.
Euro/U.S. Dollar (EURUSD) 4-Hour Chart.
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
The EURUSD 4-hour chart presents an Elliott Wave analysis suggesting a bearish trend. The current wave structure is classified as orange wave 3, forming a segment of a broader impulsive pattern within navy blue wave 3.
Based on the analysis, orange wave 2 seems to have concluded, allowing the market to progress into orange wave 3 within the framework of navy blue wave 3. This movement aligns with the principles of Elliott Wave Theory, which identifies repetitive wave patterns to forecast market trends.
Orange wave 3 is now actively unfolding. Once completed, the analysis anticipates a shift into orange wave 4 as the next higher-degree direction.
Key levels
-
Wave Cancel Invalidation Level: 1.05974
Any price action surpassing this invalidation level would necessitate revisiting the current wave count, potentially altering the projected trend and structure.
Trading insights
This analysis supports the outlook of continued bearish momentum, emphasizing the impulsive characteristics of the ongoing wave sequence. It offers traders valuable insights into potential market movements while pinpointing critical levels for confirming or invalidating the wave count.
Technical analyst: Malik Awais.
EUR/USD Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended Content
Editors’ Picks
EUR/USD hovers above 1.0500 amid French political jitters
EUR/USD is trading modestly flat above 1.0500 in the early European morning on Wednesday. The pair gyrates in a familiar range amid a broadly stable US Dollar and French political uncertainty, as the government faces a no-confidence vote in a busy day ahead.
GBP/USD clings to gains below 1.2700 ahead of Bailey's speech
GBP/USD is consolidating gains below 1.2700 in early European trading on Wednesday. Traders refrain from placing fresh bets ahead of speeches from BoE Governor Bailey and Fed Chair Powell later in the day. US ADP Jobs and ISM Services PMI data are also awaited.
Gold price slides below $2,640, fresh daily low ahead of Fed Chair Powell's speech
Gold price attracts some sellers following an intraday uptick to the $2,650 supply zone and hits a fresh daily low during the first half of the European session on Wednesday. The precious metal, however, remains confined in a familiar range held over the past week or so as traders seem reluctant to place aggressive directional bets ahead of Fed Chair Jerome Powell's speech.
ADP report expected to show US private sector job growth cooled in November
The ADP Employment Change report is seen showing a deceleration of job creation in the US private sector in November. The ADP report could anticipate the more relevant Nonfarm Payrolls report on Friday.
The fall of Barnier’s government would be bad news for the French economy
This French political stand-off is just one more negative for the euro. With the eurozone economy facing the threat of tariffs in 2025 and the region lacking any prospect of cohesive fiscal support, the potential fall of the French government merely adds to views that the ECB will have to do the heavy lifting in 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.