EURUSD Elliott Wave Analysis - Trading Lounge Day Chart
Euro/ U.S. Dollar (EURUSD) Day Chart Analysis
EURUSD Elliott Wave Technical Analysis
Function: Counter Trend
Mode: Corrective
Structure: Orange wave 2
Position: Navy blue wave 3
Direction Next Higher Degrees: Orange wave 3
Details: Orange wave 1 appears completed, and orange wave 2 is currently unfolding.
Wave Cancel Invalid Level: 1.06678
The EURUSD Elliott Wave Analysis on the daily chart highlights a counter-trend phase, indicating that the market is moving against the main trend. This phase is classified as corrective, meaning the market is undergoing a temporary pullback. Currently, orange wave 2 is being analyzed after the completion of orange wave 1.
The market is positioned in navy blue wave 3 while the corrective phase of orange wave 2 is in progress. According to Elliott Wave Theory, wave 2 usually acts as a retracement, correcting part of the movement from wave 1. This retracement suggests that the counter-trend phase is temporary, and the primary trend will likely resume after orange wave 2 concludes.
After the completion of orange wave 2, the next expected movement is orange wave 3. Wave 3 typically marks a return to the primary trend and is often an impulsive wave, indicating strong potential market movement.
The key level to monitor is 1.06678. If the market drops below this point, the current wave analysis would be invalid, requiring reevaluation of the structure. Monitoring this invalidation level is crucial for confirming if the counter-trend remains valid or if a new trend is emerging.
Summary
The EURUSD Elliott Wave Analysis shows the market in a corrective phase with orange wave 2 developing. Traders should keep an eye on the invalidation level at 1.06678 to confirm if the correction remains intact. Once orange wave 2 concludes, orange wave 3 is expected to resume the primary trend.
Euro/ U.S. Dollar (EURUSD) 4-Hour Chart Technical Analysis
EURUSD Elliott Wave Analysis
Function: Counter Trend
Mode: Corrective
Structure: Orange wave 2
Position: Navy blue wave 3
Direction Next Higher Degrees: Orange wave 3
Details: Orange wave 1 appears to be completed, and orange wave 2 is currently unfolding.
Wave Cancel Invalidation Level: 1.06678
The EURUSD Elliott Wave Analysis on the 4-hour chart suggests a counter-trend, indicating a temporary move against the main trend. The movement is corrective, meaning the market is experiencing a retracement. Currently, orange wave 2 is being analyzed following the completion of orange wave 1.
The market is positioned in navy blue wave 3, and the corrective orange wave 2 is developing. As wave 2 retraces part of wave 1’s movement, it implies a temporary counter-trend phase. Once orange wave 2 completes, the market is expected to return to the primary trend.
The next expected movement is orange wave 3, which will signal a return to the main trend. Wave 3 is typically impulsive, often marking a strong and significant move once the correction is over.
A crucial level to monitor is 1.06678, serving as the wave cancel invalidation point. If the market falls below this level, the current Elliott Wave analysis would be invalid, requiring a reassessment of the structure. This invalidation level is key in determining whether the correction remains in play.
Summary
The EURUSD Elliott Wave Analysis suggests a corrective counter-trend phase with orange wave 2 progressing. Traders should monitor the invalidation level at 1.06678 to confirm if the correction holds. Once orange wave 2 concludes, orange wave 3 is expected to lead the market back toward the main trend.
Technical Analyst: Malik Awais
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