The EURUSD daily chart indicates a counter-trend corrective movement currently unfolding in the currency pair. Technically, this phase is classified as navy blue wave 4, developing within the broader context of gray wave 1, which follows the completion of navy blue wave 3’s upward impulse.

This corrective pattern signals a temporary pause in the dominant trend, with expectations of the next move resuming once wave 4 finalizes. The analysis sets a key invalidation level at 1.05331, which serves as a reference point for confirming or dismissing this current wave outlook.

On the daily timeframe, this structure provides a detailed view of the correction’s progress while preserving alignment with the overall Elliott Wave count. Market participants should prepare for the completion of navy blue wave 4 before the emergence of navy blue wave 5, expected to continue the primary trend upward.

The wave structure reflects a clear hierarchy: navy blue wave 4 is a part of the larger gray wave 1. Traders should watch for common corrective patterns, such as a three-wave structure or sideways price action, which are typical in these phases.

This technical situation may create opportunities for short-term trades during the correction and longer-term positioning for the expected continuation of the main trend. The daily chart remains a reliable tool for tracking this transition in EURUSD price action.

EUR/USD Elliott Wave technical analysis

Function: Counter-Trend.

Mod: Corrective.

Structure: Navy Blue Wave 4.

Position: Gray wave 1.

Direction next higher degrees: Navy blue wave 5.

Details: Navy Blue Wave 3 appears complete; Navy Blue Wave 4 is currently developing.

Cancel invalid level: 1.05331.

The EURUSD Elliott Wave Analysis on the 4-hour chart shows a counter-trend correction currently taking place. The assessment highlights navy blue wave 4 as the dominant structure within the larger gray wave 1 context. Analysts note that the impulsive wave 3 has likely finished, and the pair is now in a corrective phase under wave 4.

A crucial invalidation point is set at 1.05331, which traders should use to gauge the accuracy of this wave structure. Breaching this level may invalidate the current outlook. The 4-hour timeframe gives a focused view of how this correction is evolving, while also maintaining awareness of the larger Elliott Wave framework.

Upon the conclusion of navy blue wave 4, the expectation is a transition into navy blue wave 5, signaling a potential return to the primary upward trend. This structure supports a clear understanding of wave hierarchy, where wave 4 is not just an isolated move but part of the broader gray wave 1.

Traders are encouraged to observe standard corrective patterns, such as three-wave sequences or periods of price consolidation, which often accompany these market phases. This scenario provides potential trading setups for both short-term pullback opportunities and long-term trend continuation entries.

Technical Analyst: Malik Awais.

EUR/USD Elliott Wave technical analysis [Video]

Author

Peter Mathers

TradingLounge

Peter Mathers started actively trading in 1982. He began his career at Hoei and Shoin, a Japanese futures trading company.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

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 climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

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.