EURUSD Elliott Wave Analysis – TradingLounge
Euro / U.S. Dollar (EURUSD) – Daily Chart

EURUSD Elliott Wave Technical Analysis

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Orange Wave 5
• Position: Navy Blue Wave 3
• Direction (Next Lower Degrees): Navy Blue Wave 4
• Invalidation Level: 1.05378

Technical Overview:

The EURUSD Elliott Wave analysis on the daily chart presents a bullish scenario for the Euro against the U.S. Dollar. The current focus is on the development of orange wave 5, which forms a part of the larger navy blue wave 3. The preceding orange wave 4 appears to be completed, suggesting that orange wave 5 of 3 is now in motion.

This indicates the final segment of a significant upward sequence that originated with navy blue wave 1. The analysis identifies 1.05378 as the key invalidation level. A move below this level would undermine the current bullish interpretation and suggest a structural re-evaluation.

Market Context:

The daily chart provides a clear view of this impulsive phase, positioning it within the broader wave count. As orange wave 5 progresses, it is expected that upon its completion, the EURUSD will transition into navy blue wave 4, initiating a corrective phase before potentially advancing further in navy blue wave 5.

This wave structure is critical for traders seeking to interpret market timing and price behavior. Orange wave 5, as the final wave in this sequence, often signals trend maturity. Traders should observe for classic fifth wave signals such as momentum divergence, which can indicate potential reversals or deeper corrections.

Strategic Implications:

Holding long positions remains consistent with the prevailing trend. However, due to the terminal nature of this wave, risk management becomes increasingly important. Traders should tighten stop-loss levels and remain vigilant for any weakening price action that could precede a correction.

This Elliott Wave perspective is especially useful for currency traders aiming to capitalize on the potential completion of a substantial bullish cycle in EURUSD.

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

EURUSD Elliott Wave Technical Analysis

• Function: Trend
• Mode: Impulsive
• Structure: Orange Wave 5
• Position: Navy Blue Wave 3
• Direction (Next Lower Degrees): Navy Blue Wave 4
• Invalidation Level: 1.05378

Technical Overview:

The 4-hour Elliott Wave analysis for EURUSD highlights a strong ongoing uptrend. Orange wave 5 is currently in progress, following the completion of orange wave 4, and it is part of the larger navy blue wave 3 structure.

This analysis indicates that EURUSD is in the final stretch of a powerful impulsive phase. If price action remains above the critical invalidation level of 1.05378, the bullish outlook is maintained. A break below this level would prompt a reevaluation of the wave structure.

Market Context:

The 4-hour chart provides a detailed view of this impulsive wave, helping traders understand the pair’s current position within a broader upward trend. Once orange wave 5 is complete, a corrective navy blue wave 4 is expected to follow, potentially leading to another upward movement in navy blue wave 5.

The orange wave 5 phase typically features strong momentum and extended price swings, making it an important opportunity for trend-following strategies.

Strategic Implications:

Traders may consider holding long positions as the trend continues, but should closely monitor for any weakening signals. Maintaining appropriate risk controls around the invalidation point at 1.05378 is essential.

This analysis offers valuable insight for currency traders seeking to capitalize on what appears to be the final stage of a strong bullish move in the EURUSD pair.

Technical Analyst: Malik Awais

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