Elliot Wave technical analysis on EUR/USD from … – ForexLive

Elliot Wave technical analysis on EUR/USD from … – ForexLive

Here is an Elliot Wave technical analysis on EUR/USD from Goldman Sachs for the week ahead (report dated 07 November 2014).

EURUSD has met its minimum target for a 5th wave…

The minimum target for wave 5 of 5 from May comes in at 1.2395; the low has been 1.2358
This level is a 1.00 multiple of wave 1 and, if held as support, it could basically suggest that a full 5-wave sequence has already completed
Although it’s feasible that wave 5 could go as far as 1.2090 (which is 1.618 times wave 1), it is now more important than ever to watch very carefully for any signs of the market basing

Ultimately, 1.20 seems it should be the ideal level…

It encompasses both the extended wave 5 target (1.2090) and the target provided by the Jul. ’12 wedge (1.2043)
The actual levels are 1.2090 (1.618 times wave 1) to 1.2043 (the Jul. ‘12 low)
Even still, the market is now within range of three previous cycle lows since ’08; 1.2331, 1.2490 and 1.2043. So ultimately it’s an area which requires a little bit of caution going forward
Once a full 5-wave sequence is in place, markets are prone to entering a corrective phase which might last a third of the time it took to decline. Whether its from here or from 1.20, once wave 5 is done, EURUSD could in theory enter ~1-2 months of range-bound/messy price action taking it side-ways possibly even higher.

Categories: All, Asia Pacific, Euro, Technical Analysis | Tags: , , , | Permalink

Author: Eamonn Sheridan

Eamonn Sheridan worked with Bankers Trust Australia for 13 years as a Spot foreign exchange dealer, trading across all major currencies and all time zones. He rose to a Vice President position, running spot operations during the busy European time, leaving the bank just prior to it being sold to concentrate on running his own business in the ‘real world’! The markets, however, had him hooked – he continued to trade equities, CFDs and then on to futures, giving him broad experience across financial markets. He is now active in FX and equity index futures as well as writing for ForexLive™. Eamonn is a graduate of The University of Melbourne in Australia and lives in New South Wales.

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Elliot Wave technical analysis on EUR/USD from … – ForexLive

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