close icon

EURUSD Up 420 Pips in a Month as Uptrend Resumes

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

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 worldwide, managed to add over 420 pips in the past month. And while the Fed’s interventions can easily explain the move from a macro perspective, traders needed more precise tools to take advantage of it. With that in mind we sent the chart below to our subscribers on June 22nd.

EURUSD getting ready to resume its uptrend

A month ago, EURUSD was hovering below 1.1180, but still much higher than its March lows. The 4-hour chart above revealed two consecutive five-wave patterns with a w-x-y corrective combination in between. Impulses, as they are known in the Elliott Wave circles, show the direction of the larger trend.

Having the big picture outlook and the Fed’s money-printing in mind, we thought the uptrend should resume as soon as the a-b-c decline from 1.1422 ended. After spending most of 2018, the entire 2019 and Q1 2020 in a decline, EURUSD finally seemed poised for a major rebound. With the pair near 1.1180 a month ago, the time to be bearish was over.

EURUSD Adds 420 pips in a month as Fed's QE devalues the dollar

EURUSD started climbing right away. The top of wave ‘v’ held on for a while, but gave up too on July 15th. On July 22nd, the pair reached an intraday high of 1.1602 before closing at 1.1570.

And while the cycle in the U.S. dollar seems poised for its next major down-phase, it won’t move in a straight line. The Fed’s easing and the government’s free money can explain the process in general, but traders need more details. And that is where Elliott Wave analysis steps in.

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:

GBPJPY Recovery Takes Shape of an Impulse Pattern

Less than two years ago, during the coronavirus market panic, GBPJPY fell to a multi-year low of 124.04. The last time the pair traded at such levels was in August, 2012, when the world was still recovering from the Financial Crisis. The Covid-19 selloff didn’t last that long though. After plunging 10.9% in March 2020…

Read More »

USDCAD Rises in Predictable Elliott Wave Manner

USDCAD rose significantly this past week, climbing from 1.2512 at the open to as high as 1.2949 Friday. The surge can be attributed to the slide in crude oil prices. Oil and USDCAD are known to have an inverse correlation due to the heavy reliance of the Canada’s economy on the commodity. And while the…

Read More »

Two Months Ahead of the 400-Pip Slide in EURUSD

Economic and fiscal steps taken to help the global economy rebound from the COVID-19 crisis are still in effect in both U.S. and EU. The amount of stimulus by the Fed far eclipsed the measures taken by the ECB. Direct unemployment payments are even creating a labor shortage. Many people prefer to rely on government…

Read More »

Elliott Wave Support Can Send USDZAR 15% Higher

It’s been a bad year for USDZAR bulls. The pair has been declining ever since it reached a high of 19.34 in early-April 2020. As of this writing, it is barely holding above 14.30, down 26% in a little over twelve months. Does this mean now is a good time to join the bears? We…

Read More »

Ahead of EURUSD ‘s Disappointing Start to 2021

Overall, 2020 was a good year for EURUSD bulls. Despite the March crash during the coronavirus-related volatility, the pair ended the year up almost 9%. With more stimulus already in the pipeline at the start of 2021, it made sense to expect further devaluation of the dollar against the Euro. Alas, common sense doesn’t always…

Read More »

USDJPY Gains 450 Pips and Counting in Two Months

2020 wasn’t a good year for USDJPY bulls. Starting from 108.63 in January, the pair closed at 103.32 on December 31st, down 4.9% in twelve months. But what the dollar lost against the yen in the entire 2020 it is now close to recouping in less than three months. USDJPY is approaching 108.50 as of…

Read More »

USDTRY Drop Accelerates as Elliott Wave Predicted

The Turkish Lira hit its highest level against the U.S. dollar in six months. The country economic and legal reforms announced last year coupled with tighter monetary policy appear to be giving the desired effect. USDTRY is down 19.3% from its November 2020 high after being in an uptrend since mid-2008. Most analyst, however, are…

Read More »

More analyses