EURUSD Elliott Wave Analysis – Trading Lounge Day Chart
Euro/ U.S. Dollar (EURUSD) Day Chart Analysis
EURUSD Elliott Wave Technical Analysis
FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Navy Blue Wave 1
POSITION: Gray Wave 1
DIRECTION NEXT LOWER DEGREES: Navy Blue Wave 2
DETAILS: Navy Blue Wave 1 within Gray Wave 1 is advancing and nearing finalization.
Wave Cancel Invalid Level: 1.01781
The EURUSD Elliott Wave daily analysis reveals a strengthening bullish trend, forming an impulsive five-wave structure. The market is progressing through navy blue wave 1, nested within the larger gray wave 1, signaling the beginning of a larger upward Elliott Wave sequence. This setup may lead to a sustained bullish move across short and medium-term horizons.
Wave 1 typically marks the start of a new uptrend. While initial momentum may be modest, it sets the directional tone for subsequent waves. As the current wave 1 approaches completion, a minor corrective pullback (wave 2) is expected before the onset of a stronger rally in wave 3.
The anticipated corrective EURUSD wave 2 will likely retrace part of wave 1, offering potential buying opportunities aligned with the broader trend. The current pattern indicates a bullish foundation is taking shape, and further upside is probable upon wave 2’s conclusion.
The key support level at 1.01781 serves as the invalidation point for this bullish count. A break below this level would invalidate the current wave structure and require a revised outlook.
Traders should monitor wave 1’s completion signs—such as resistance tests and momentum divergence—before preparing for the next entry setup in wave 2. As wave 3 typically exhibits stronger momentum, positioning ahead of its emergence can offer favorable risk-reward setups. Confirming signals through indicators and price structure is essential as the market transitions phases.
Euro/ U.S. Dollar (EURUSD) Elliott Wave Analysis - Tradinglounge 4-Hour Chart
EURUSD Elliott Wave Technical Analysis
FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Orange Wave 5
POSITION: Navy Blue Wave 1
DIRECTION NEXT LOWER DEGREES: Navy Blue Wave 2
DETAILS: Orange Wave 4 is likely complete. Orange Wave 5 is currently unfolding.
Wave Cancel Invalid Level: 1.01781
The EURUSD 4-hour Elliott Wave analysis continues to support a bullish outlook. The market appears to have completed orange wave 4 and is now advancing into orange wave 5, completing the navy blue wave 1 structure. This signals a short-term rally nearing exhaustion before a corrective retracement begins.
Orange wave 5 represents the final phase of the current impulsive move. It may push prices slightly above previous highs or show signs of divergence and weakening momentum. The current rally could be reaching its final stages as wave 5 progresses.
Following this, EURUSD wave 2—a corrective move—should emerge, offering a potential pullback in line with the larger bullish trend. The invalidation level at 1.01781 remains critical—any move below this threshold invalidates the wave count and calls for reassessment.
Watch for classic completion signals such as momentum divergence, candlestick reversals, or trendline breaks to confirm wave 5’s conclusion. The 4-hour timeframe offers essential insights for traders seeking to capitalize on trend transitions.
As the impulsive structure shifts toward correction, traders should remain alert for entry opportunities during wave 2. Respecting the invalidation level and aligning strategies with Elliott Wave rules enhances accuracy and trading confidence.
Technical Analyst: Malik Awais
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