close icon

EURUSD Turns Up Ahead of Brexit Talks Breakthrough

What will EURUSD bring next? That is the subject of discussion in our latest premium analysis! Order and receive TODAY!

EURUSD is up by 260 pips since the beginning of October. The pair climbed from 1.0879 to 1.1140 in just 14 trading days. The rally appears to be fueled by optimism regarding a possible Brexit deal and the tentative “phase-one” agreement between the US and China. In our opinion, however, there is something more to it.

Inspired by Elliott Wave analysis, we have been expecting a bullish reversal in EURUSD for a while. The truth is it could have happened earlier. The pattern we have been tracking for the past several weeks is called an ending diagonal. Take a look at it on the chart below, sent to our subscribers as a short-term update on Wednesday, October 2nd.

Complete Elliott Wave pattern on EURUSD chart

Ending diagonals form in the position of the last wave of the larger sequence. Our full EURUSD analysis included weekly and daily charts in addition to the 4-hour chart above. This helped us put this pattern into the bigger picture and conclude that the larger decline was probably in its final stages.

EURUSD Bulls Unimpressed with Looming Brexit Deadline

The pattern itself consists of five sub-waves, labeled 1-2-3-4-5. Each wave is corrective in structure and waves 1 and 4 overlap. The fact that the shape of the pattern was contracting only strengthened the case for an upcoming bullish reversal.

In other words, at the start of the month, the stage was already set for the breakthrough in the Brexit negotiations reached two weeks later. It was never a sure shot, but while EURUSD was hovering around a two-and-a-half year low, the odds were actually in the bulls’ favor.

Of course, there was no way to predict the outcome of the negotiations. The Brexit saga has been going on for over three years now. Britain’s exit from the EU has been postponed once already. That is why we find Elliott Wave patterns to be a lot more reliable than politics. In EURUSD’s case, it was the ending diagonal we counted on, not Boris Johnson. Fortunately, it didn’t disappoint.

What will EURUSD bring next? That is the subject of discussion in our latest premium analysis! Order and receive TODAY!

Stay informed with our newsletter

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

Privacy policy
You may also like:

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 »

EURUSD Surges 570 Pips After Fibonacci Encounter

EURUSD is trading at levels last seen in April 2018, when it was on its way down to 1.0636 by March 2020. The pair is now approaching 1.2200, up 14.5% since the COVID-19 selloff nine months ago. But trends don’t move in a straight line. Two months ago, we showed you how Elliott Wave analysis…

Read More »

USDTRY Heads South After Central Bank Decision

Turkey finally took a decisive step towards taming the double-digit inflation, which has been destroying the Lira’s value for years. The country’s central bank lifted the benchmark interest rate to 15%, up 475 basis points from its previous standing. USDTRY fell as low as 7.5031 earlier today, on track for a second consecutive week of…

Read More »

GBPNZD Can Slide to Sub-1.9000 In Coming Weeks

What will EURUSD, USDJPY and USDCAD bring next week? That is the subject of discussion in our next premium analyses due out on Sunday! GBPNZD exceeded 2.0270 in mid-August, but the bulls could not keep the positive momentum. A month later, the pair fell to 1.9055, losing 6% in the process. And just when it…

Read More »

Ahead of EURUSD ‘s 280-pip Drop in September

EURUSD had been on a tear since mid-March when it bottomed out at 1.0636. Nearly six months later, on the first day of September, the pair exceeded the 1.2000 mark. The bulls seemed firmly in control and the Fed’s money printing suggested further losses ahead for the dollar. However, years of experience had taught us…

Read More »

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 »

More analyses