Watch Out For EurUSd

The last update I did on this currency pair was titled How to trade the elliot wave pattern when I wrote about how to follow price actions using elliot wave analysis and trading clear patterns that price usually respond to.

Prior to that, there was an update titled Eurusd in a bearish net , which was immediately followed by a fast bearish move.

 

I still maintain my belief that the larger term direction is bearish. The bullish move from 1.05 is clearly a correction. 

What corrective pattern price is trying to form and when the bearish movement will start, is what we want to know. 

 

 

The chart above shows two corrective waves- [w] and [x]. Wave [w] is a corrective zigzag while [w] fits a flat. 

The wave c of [x] is emerging as an ending diagonal, a tradable pattern.

If price dips a bit from the current position ( to complete the last leg of the diagonal) and break above the emerging diagonal's wave iv, we should be seeing Eurusd advancing.

Levels to watch out for are 1.45 and 1.8 . 

 

This bullish corrective pattern, if not a complex correction, could be a double zigzag. 

Price will validate or invalidate this analysis. It is what I expect of price and if price agrees with me, I will key in.

There will be an update later.