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Elliott wave analysis for the EURUSD: 4hr tf analysis

My previous post for the EURUSD which called for a sell off can be found here:

https://coinanalyst.investments/2018/04/22/elliott-wave-analysis-for-eurusd-4hr-tf/

EURUSD based on FXCM’s data (chart used in this analysis) finished the sell off close to the second target area of ~1.20582 mentioned in the post last week.

EURUSD 4hr tf analysis chart.png

Price action from ~1.23793 on April 19,2018 to a close of 1.20715 on April 27,2018 is identified in this analysis as double zigzag Elliott wave structure that also has possibly terminated a Minor wave degree.

The implication of the above is that the EURUSD should resume a bullish trend and move back up as an impulse wave or a 3 wave correction. Either scenario points towards a bull move for the EURUSD, and therefore only long trades (buy) should be placed as it is safer to trade in the direction of the trend.

It also better to wait for perhaps a 50% to 61.8% retracement of the current move from ~ 1.20715 to 1.21263 before initiating a long position. The retracement represents a wave (ii) position (correction) and therefore further improves the chances of the EURUSD resuming an uptrend.

The point of invalidation (POI) for this analysis is a price close below the low of 1.20555 made on April 27, 2018.

A bullish move in the EURUSD should target the region that was used in the previous post and is also marked on the chart in this analysis.

 

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