EURUSD Remains Bearish Below 1.1123

ew-forecast Updated   
SAXO:EURUSD   Euro / U.S. Dollar
The USD is mostly higher since FED decisions on rates last week due to the "buy the rumor sell the news" impact, but not against the EUR. We assume that because of the situation in Ukraine the EUR is not on the investor's list due to a lot of risks that remain on the table. There is a speculation that the economy in Europe can be in trouble as European companies that have operations in Russia are preparing for collateral damage as sanctions aim to penalize Russia's economy.

Technically speaking, the EURUSD pair is not looking bullish either. We see a bearish ongoing trend after 1.123 breakouts that turned into a nice resistance recently. Notice that recovery from 1.080 was also in three waves, so that's a corrective rally meaning it can be fully retraced. And this, can happen soon if we consider a broken trendline which is normally a confirmation for a fifth wave drop.

We could change the outlook for the pair if the price goes back above 1.12.

Take care,

EURUSD is making bigger recovery, but still looks corrective for wave 4 while it's below 1.1280 invalidation level. So, still watch out for a continuation lower for wave 5 ahead of NFP report, especially if we see broken channel support line.
Finally, EURUSD is down as expected and with recent break below channel support line, seems like it's on the way back to lows for wave 5.

Elliott Wave Service
👉 www.wavetraders.com
👉 Newsletter Sign up: bit.ly/3FVPVzO

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.