EURUSD Technical Analysis Apr 23, 2018


The bear might overshadow EURUSD soon

Looking at chart D1, the currency pair EURUSD is fluctuating in the range of 1.224 to 1.239 after the price has been rising and unfolding a bullish impulsive movement for nearly 5 months. However, the pair seems to stop the uptrend after accomplishing the 5th Elliott Wave, and an Elliott Correction Pattern is expected to happen soon. The pair continues to move downwards in consecutive recent candlesticks and has already reached a key level of 1.22. In the confluence zone (as marked in the triangle), if the price can successfully break out that resistance zone, there is a possibility for the pair to enter the bearish Elliot Wave (as marked in the green gradient line). Moreover, thanks to MACD indicator, MACD reading during wave five was lower than the one during the wave three, which indicates that the momentum was weakening, and the corrective Elliott wave formation has started.  

H4 EURUSD Apr 23 2018

Having regards to the H4 chart of the pair EURUSD, we can recognize the Fakey pattern with 1 bar false-break marked in the purple triangle. The price broke past the inside bar low and continued a strong downtrend, tumbling far below the key level. There is a little hint from which we may extrapolate that the counter trend is to happen in the near time.

According to chart H4 and D1, we could expect the price to move downwards to the level of 1.2 in the next daily candlesticks.

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