close icon

EURUSD Surges 570 Pips After Fibonacci Encounter

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

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 prepared us for the decline that occurred in September. Now, let us examine what happened next on the chart below, sent to our subscribers on October 28th.

Fourth wave correction unfolding in EURUSD pair

Back then, we thought the September weakness stood for wave 4 within a larger five-wave impulse pattern. It logically followed that more strength in wave 5 can be expected. However, as October was drawing to a close, it became evident that wave 4 was not over yet.

Applying Warren Buffett Wisdom to EURUSD Trading

So instead of expecting a rally right away, we assumed wave 4 was going to evolve into a w-x-y double zigzag correction. This meant a new drop in wave ‘y’ of 4 should first occur before the uptrend can resume in wave 5. The anticipated bullish reversal was supposed to happen near the 38.2% Fibonacci support level, where fourth waves often end. Over a month ago now, the updated chart of EURUSD below shows how things went.

Fibonacci support level sends EURUSD surging

We find the very idea that one can predict exact tops and bottoms in the market extremely naive. It has more to do with wishful thinking than actual analysis. That is why we’d rather work with approximations and reversal areas than precise price levels. The latter create the illusion of knowledge, but can never achieve the real thing. To quote the great Warren Buffett, it’s better to be approximately right than precisely wrong.

And indeed, EURUSD ‘s wave 4 ended slightly above the 38.2% Fibonacci level. Wave ‘y’ had barely breached the bottom of wave ‘w’, when the bulls decided they’ve had enough. They took the wheel from 1.1603 on November 3rd and lifted the pair by over 570 pips in the next 30 days. Fifth waves reach a new high in 99% of the cases. With that in mind, one didn’t need to be very precise to catch a good chunk of that move.

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:

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