Is it time for a bullish reversal on the EURUSD? Not yet in our analysis. Price action made a strong move up but has respected the 38.2%-50% Fibonacci resistance level.
Our weekly Elliott Wave analysis reviews the EUR/USD, the Bitcoin crypto currency, and the GBP/USD.EUR/USD Bullis Spike Part of Triangle Pattern?.The EUR/USD looked bearish in last week’s Elliott Wave analysis but price action actually made a very strong bullish bounce.
Is it time for a bullish reversal? Not yet in our analysis. Price action made a strong move up but has respected the 38.2%-50% Fibonacci resistance levels.The bullish swing is expected to be a wave A (orange) of a larger ABCDE (orange) triangle pattern. The triangle would confirm the wave 4 (green) pattern.
A bearish breakout would indicate a wave 5 (green) of wave 3 (pink) whereas a bullish breakout above the top places the bearish analysis on hold. A break above the bottom of wave 1 (red circle) invalidates it.
The Bitcoin crypto pair seemed to have completed a bearish wave A at the end of January. Last week we decided to make a revision to that Elliott Wave forecast with a wave 4 and then another bearish wave 5. Now the situation is 50-50%:
At the moment, price action is making a 3 wave pattern upwards – like an ABC or 123 (green). But the 3rd wave is much stronger than the usual wave C and is behaving more like a wave 3.If price action completes a 5 wave pattern on lower time frames, then the bearish scenario with a wave 4-5 within wave A (pink) is unlikely.In that case, a bullish ABC (gray) pattern is taking place within the expected wave B (pink).
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