Coin_Analyst

Elliott wave analysis for the EURUSD: 4hr tf analysis

Long
FX:EURUSD   Euro / U.S. Dollar
My previous post for the EURUSD which called for a sell off can be found here:

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.
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.