Elliott Wave Analysis 11/01/2017

EUR/USD
EUR/USD broke to the down side of a 2 year triangle in December, which has lead to a 14 year low for the pair.  The downwards trend is now in the third wave of the pattern, which should see the pair travel a similar distance to the first wave, bringing it to parity.  However, it is possible that wave (3) could travel 1.618 times the distance of wave (1), which would put EUR/USD into the region of 0.9600.

eurusd_jan_2017

GBP/USD

GBP/USD has seen a rally to the region of wave 4 (around 1.2800-1.3430), but this is likely to be part of a larger correction.  The pair may develop into a flat, which will test the 1.2038, before forming a wave (5) that breaks the 1.2038 level to achieve a new low.

 

gbpusd_jan_2017

 

market-analysis-london-trader

Risk Warning: Transactions in Contracts for Difference and Foreign Currency are leveraged products that can result in losses that exceed your initial deposit. These products may not be suitable for everyone. Please seek advice if you do not fully understand the risks.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply