EUR/USD Elliott Wave Technical Analysis
Day Chart
Market Overview
The EURUSD day chart displays a bullish trend with an impulsive wave structure. The market is currently positioned within Orange Wave 3 of Navy Blue Wave 3, indicating continued upward momentum. The completion of Orange Wave 2, a corrective phase, suggests that Orange Wave 3 is now in action, characterized by accelerated price movement and strong trend strength.
Key Level to Watch
A crucial level to monitor is the wave cancel invalidation level at 1.02098. If breached, this level would invalidate the current wave count. However, as long as the price remains above this level, the bullish trend remains valid and intact.
4-Hour Chart
Market Overview
The EURUSD 4-hour chart aligns with the bullish trend observed on the day chart. The market is positioned within Orange Wave 3 of Gray Wave 3, showcasing an impulsive wave structure and ongoing upward momentum. The completion of Gray Wave 2 indicates the commencement of Gray Wave 3, representing a strong price movement in the trend's direction and reinforcing bullish expectations.
Key Factors to Watch
As Gray Wave 3 progresses, traders can expect further bullish movement and potential price gains. The wave cancel invalidation level remains at 1.02098. A break below this point would necessitate a reassessment of the market structure. Remaining above this level confirms the bullish outlook and trend strength.
Elliott Wave Analysis Summary
-
Day Chart
- Function: Bullish Trend
- Mode: Impulsive
- Position: Navy Blue Wave 3
- Details: Orange Wave 3 in play
-
4-Hour Chart
- Function: Bullish Trend
- Mode: Impulsive
- Position: Gray Wave 3 of Orange Wave 3
- Details: Gray Wave 2 completed, Gray Wave 3 now in action
Technical Considerations
- Wave Cancel Invalidation Level: 1.02098
Trading Implications
Day Chart
- Monitor price movements above 1.02098 to confirm trend strength.
- Adjust strategies accordingly based on market behavior.
4-Hour Chart
- Anticipate further bullish movement within Gray Wave 3.
- Maintain focus on the wave cancel invalidation level.
Conclusion
Both the day chart and the 4-hour chart of EURUSD present a bullish trend within an impulsive wave structure. The completion of corrective phases on both charts suggests the continuation of strong upward momentum. Traders should monitor key levels and market behavior to make informed trading decisions.