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Tuesday, January 2, 2024

Elliott Wave Analysis of EUR/USD


Elliott Wave Analysis of EUR/USD

HAPPY NEW YEAR 2024!

EUR/USD is now in circle wave 3 higher. After an expanded flat circle wave 2 we should expect an extended rally in circle wave 3, which means a rally to at least 1.2962, where circle wave 3 will be 161.8% the length of circle wave 1. That said, I would not be surprised to see circle wave 3 extend further towards the 261.8% extension target at 1.4516. 

Short-term I will be looking for a minor correction in wave (2) towards support at 1.0724 before the next strong push higher in wave (3) towards 1.3555. 

Just a side note. The USD tend to be towards its strong side in the month of January, which also favor a temporary correction in EUR/USD towards 1.0724 before higher again.  

 

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