Elliott Wave Analysis: EUR/USD Has Room for Higher Prices

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The USD is moving lower across the board as the gap between the Fed and other CBs narrows. We are seeing more and more ECB members and speculation for a possible 50bp increase, which is the main reason for a stronger euro today. There was also RBNZ, which raised tariffs as expected and was ready for more, so USD is mostly trading south. At the same time stocks have also found some support as US yields are falling, so this is another reason for USD withdrawal. From an Elliott wave perspective we see EURUSD turning higher, breaking the channel resistance line, so it looks like the fifth wave is over as we talked about our past updates. Recovery is quite strong so ideally, this is a wave (A) first stage of a higher grade recovery that can see even move up to 1.08 / 1.09, but after a wave (B) failure that can see a withdrawal in the very near future. .

Great picture

Looking for a final C wave of a large complex correction of 2008 highs. The market may try to build a base near 1.0 level later this year.

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