EURUSD - setting up a launchpad for a rally targeting 1.36
After so many requests from my students I am about to start covering main FX pairs! Please shoot me email with request for pairs to analyze.
Let’s start with a weekly chart. Off the 0.8227 low in October 2000 EUR played the (A)-(B)-(C) fractal which I count as wave ( 1 ) up. That wave ( 1 ) up topped at 1,6038 in July 2008.
The rally off 2017 low has an impulsive structure. You can see clear five waves up. That rally topped at 1.2555 in February 2018. The decline that followed has a questionable structure. It could be wave B down as shown on the chart. Or it could be just a wave ( a ) of B, the first leg of that wave B down. In any case, whether it is all of B down or only its first leg ( a ) down we are going to get a strong move up soon. Price has been trading sideways in a tight bullish wedge. We can get the final drop to 1.11 or even 1.0970 before a bullish reversal. If that move down off the 2018 top is all of wave B down then we may get a strong multi week rally to 1.36. Conversely, if that was only the first leg down in wave ( a ) of B then it still has to rally at least to 1.1750 – 1.1870.