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Thursday, December 14, 2023

Elliott Wave Analysis of EUR/USD - New Impulsive Wave Beginning

 


EUR/USD New Impulsive Wave Beginning


EUR/USD is currently in a major uptrend that began back in October 2000 when EUR/USD tested the low of 0.8412. From that low we saw a five wave rally to 1.6038 in July 2008. This peak was followed by a double zig-zag correction that finished with the September 2022 low at 0.9536 from where a new impulsive rally is unfolding. 

We saw circle wave 1 rally from the 0.9536 low to 1.0998 followed by an expanded flat correction in circle wave 2 that completed with the test of 1.0448 and circle wave 3 is now ready to push higher towards at least 1.2962. 

When a wave 2 correction turns into an expanded flat correction. An extended rally should follow and in this case we will be looking for circle wave 3 to be at least 161.8% the length of circle wave 1, which calls for a rally towards to at least 1.2962 and maybe even higher. 

Short-term I will expect minor support at 1.0827 to be able to act as a floor for the next strong push higher through resistance at 1.1017 for a rally towards 1.1276 and 1.1495 on the way higher towards 1.2962 and possibly above. 


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