close icon

Elliott Wave Setup Helps EURUSD Add 325 Pips

What will EURUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!

EURUSD has been under pressure for over two years now. The pair reached 1.2556 in February 2018, but has been making lower lows and lower highs ever since. Yet, the past couple of weeks painted a different picture.

Between May 18th and May 29th, the euro surged 325 pips against the U.S. dollar. In those ten trading days EURUSD rose from 1.0820 to as high as 1.1145. And while hardly anyone can explain the rally with any certainty, there was a way for traders to actually stay ahead of it. No, it had nothing to do with the economy or geopolitics. Take a look below.

Attractive risk/reward Elliott Wave setup emerged in EURUSD two weeks ago

The chart above was included in the premium analysis sent to subscribers before the open on Monday, May 18th. It revealed a bullish Elliott Wave setup, formed by a five-wave impulse up to 1.1148 and a simple a-b-c zigzag correction. It is interesting to notice that wave ‘b’ of the correction was an expanding flat.

According to the theory, once a correction is over, the larger trend resumes in the direction of the impulsive sequence. We though wave ‘c’ was over at 1.0767. So as long as this level was intact, it made sense to expect more strength in EURUSD. The updated chart below shows how the situation unfolded.

EURUSD adds 325 pips in two weeks

The pair started rising almost immediately. On Thursday, May 21st, it took out 1.1000. A small dip dragged it back down to 1.0871 on May 25th, but it couldn’t stop the bulls. Fast-forward to May 29th and EURUSD was hovering above 1.1140 again. 1.0767 was never breached.

What will EURUSD bring next week? That is the subject of discussion in our next premium analysis due out late Sunday!



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Ahead of GBPUSD in Both Directions. Now What?

GBPUSD had a good run over the past six months, climbing from its 1.1412 March low to as high as 1.3483 last week. The pair is now back below 1.3000 after the latest portion of Brexit-related mess. Later in this article we will share our view of where the Pound is headed against the dollar,…

Read More »

USDTRY Set to Complete 12-Year Impulse Pattern

The U.S. dollar has been steadily climbing against the Turkish lira since 2008. Ten years later, in 2018, USDTRY reached 7.1500 on the back of geopolitical tensions and President Erdogan‘s reckless political decisions. In May 2019, however, the pair was down to 6.0600 and it looked like the Lira’s plunge might be finally over. Unfortunately,…

Read More »

EURUSD Up 420 Pips in a Month as Uptrend Resumes

The inevitable seems to be happening to the U.S. dollar. After record-breaking liquidity injections by the Fed in response to the COVID-19 crisis, the greenback is weakening across the board. The U.S. dollar has recently been declining against its major rivals, including the Yen, the pound and the euro. EURUSD, the most traded Forex pair…

Read More »

GBPJPY Bears Aiming at 120, Before Giving Up

Whether it is because of Brexit or not, GBPJPY has been trading below 160.00 ever since the referendum in June 2016. The pair has been locked in a wide range between 156 and 124 for four years now. Last week, it closed the session at 134.66, down from 138.84 at the open. In order to…

Read More »

EURGBP Pattern Signals Bullish Reversal Ahead

EURGBP has been in free fall since March 19th, when it rose to 0.9500. A month and a half later now, the pair is hovering below 0.8730, down 8% from the peak. Is the downtrend going to continue or should we expect a change of direction? That is the question we hope to answer in…

Read More »

GBPUSD Aiming at 1.30, but May Tumble to 1.21 First

Not long ago, we shared our long-term view of GBPUSD. In our opinion, the down-phase of the pair’s cycle, which is in its 13th year now, is almost over. One last dip to 1.1000 is likely to be followed by a major bearish reversal and the start of the next up-phase. Now, we are going…

Read More »

British Pound ‘s 13-Year Downtrend Almost Over

The thirteen-year period between 2007 and 2020 started with the biggest crisis since the Great Depression and is about to end with the biggest crisis since the Great Depression. Between the two, the longest economic expansion on record took place. And while stock markets around the world reflected that recovery, some currencies have been in…

Read More »

More analyses