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EURUSD Elliott Wave Analysis Trading Lounge 4 Hour  Chart, 24 January 2024

Euro/U.S.Dollar(EURUSD) 4 Hour Chart

EURUSD Elliott Wave Technical Analysis

Function:  Trend

Mode: impulsive  

Structure: subwaves of black wave 3

Position: Red wave 3

Direction Next Higher Degrees: black wave 3 (may started)

Details: Blue wave C of black wave 2 looking completed at 1.08224. Now sub waves of black wave 3 may start Wave Cancel invalid level: 1.04499

The "EURUSD Elliott Wave Analysis Trading Lounge 4 Hour Chart" for 24 January 24, offers a comprehensive analysis of the Euro/U.S. Dollar (EURUSD) currency pair, employing the Elliott Wave theory to provide insights into potential market movements.

The declared "Function" is "Trend," indicating a strategic focus on identifying and capitalizing on the prevailing market direction. This aligns with the broader aim of many traders, which is to ride the momentum of a trend for profitable outcomes.

The identified "Mode" is "Impulsive," signaling a phase characterized by strong, directional movements. In the context of Elliott Waves, impulsive waves typically consist of five sub waves, denoted as 1, 2, 3, 4, 5. These waves represent phases of price movement with specific characteristics.

The specified "Structure" involves the scrutiny of "sub waves of black wave 3," implying a meticulous examination of the internal subwave patterns within the broader structure of black wave 3. This approach allows for a detailed understanding of the ongoing trend.

The "Position" is defined as "Red wave 3," indicating the current phase within the Elliott Wave count. Black wave 3 is a subwave within the larger structure of Red wave 3.

Regarding "Direction Next Higher Degrees," the focus is on the potential initiation of "black wave 3 (may have started)." This implies an anticipation that the broader trend of black wave 3 might be in its early stages.

In the "Details" section, it is highlighted that "Blue wave C of black wave 2 looking completed at 1.08224." This suggests the conclusion of a corrective phase (wave 2) with the completion of blue wave C.

The "Wave Cancel invalid level" is identified as "1.04499." This level serves as a critical reference point, indicating that a breach of this level could invalidate the current wave count. This breach might prompt a reassessment of the analysis and could suggest a potential change in the anticipated market direction.

In summary, the EURUSD Elliott Wave Analysis for the 4-hour chart on 24 January 24, points toward an impulsive trend, with the completion of a corrective phase (wave 2) and the potential initiation of the impulsive phase of black wave 3. Traders are advised to remain vigilant, with a focus on the invalidation level at 1.04499.

Technical Analyst: Malik Awais

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