Trading EURUSD - Forex Charts & Analysis

Trading EURUSD - Forex Charts & Analysis

By Waves Strategy Advisors (www.wavesstrategy.com)

To take trading calls based on Elliott Wave it is important to recognize the patterns formed and act wisely.

One such example is EURUSD pair which has formed triangle pattern as shown in Weekly Chart below.

EURUSD Weekly Chart:

EURUSD Daily Chart:

Wave Analysis:

As shown above in weekly chart of EURUSD, in the month of October 2008 prices have made a lifetime high of 1.60 levels, topped out near the same level and fell violently. After a steep fall, since last four years (2008-2012) prices witnessed a strong consolidation in this pair between 1.50 – 1.20. 

As per wave perspective, prices are moving in corrective fashion since 2008. As shown on daily chart, it seems prices are moving in complex corrective pattern. In the month of July 2012 EURUSDcompleted wave A of second correction near 1.20 level and started the next leg on upside in the form of wave B.

We can observe above in daily chart, prices have breached the red sloping channel on upside and formed an Inverse Head and Shoulder (H&S) pattern. Neckline comes near 1.3150 levels. However, it is important to wait for neckline to be broken on upside for Head & Shoulder pattern confirmation. On downside 1.2635 will act as important support and a break below this level will change the trend to down.

In short, as long as 1.2635 is protected our bias is positive. Break of 1.3150 level will resume the uptrend and prices could move higher till 50% of retracement of 1.35 levels in the coming trading sessions.

To know more about Trading Forex markets write to us at helpdesk@wavesstrategy.com or call us at +91 9920422202.