EURUSD Looking For A Bounce, While EURCHF Breaking Higher

Intermediate

Good day traders! Today, let’s look at EURUSD and EURCHF.

EURUSD made a sharp and overlapping drop in the last couple of trading sessions, which we identified it as a complex correction. We can see that price may be ending this complex seven leg correction around the 1.1739 region, from where a new intra-day rally is already seen. A five-wave recovery and a breach above the 1.1820 level would indicate a bullish reversal.

EURUSD, 1H

EURUSD 1H

We may see price falling on the EURUSD, but bear in mind, drop from 1.1880 region is overlapping and corrective and does not resemble an impulse (clear five waves, with no overlaps).

Now let’s switch to the EURCHF and its long-term view.

EURCHF is trading bullishly since February of 2017. We see a clear bullish impulse in the making, with four of its primary legs fully unfolded. The final wave that showed up, after that wave 3) high was corrective wave 4), that found a base near the upper channel line. Current minor strength that is on display can now be start of final wave 5), that may pull price higher, towards the Fibonacci ratio of 161.8.

EURCHF, Daily

EURCHF Daily

Now here we see an impulse in action, clear four waves with one leg still missing. Hopefully wave 5) is already in motion.

An example o fan impulse:

Impulse Chart

With respect to the theory on the Impulsive wave, please check our previous article for USDMXN.

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Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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