EURUSD Elliott Wave Analysis - Trading Lounge
Euro/ U.S. Dollar (EURUSD) Day Chart

EURUSD Elliott Wave Technical Analysis

• Function: Bullish Trend
• Mode: Impulsive
• Structure: Orange Wave 1
• Position: Navy Blue Wave 1
• Direction (Next Lower Degrees): Orange Wave 2
• Details: Orange wave 1 of navy blue wave 1 is currently unfolding.
• Wave Cancel Invalidation Level: 1.02197

The Euro to U.S. Dollar currency pair is presently in a bullish trend, as analyzed using Elliott Wave Theory on the daily chart. The market is progressing through an impulsive phase, specifically within orange wave 1, which forms part of the broader navy blue wave 1. This phase signifies the initial upward movement of a larger trend, with orange wave 1 actively developing.

Upon the completion of orange wave 1, the next anticipated phase is orange wave 2, a corrective wave that will precede the continuation of the bullish trend. This alternation between impulsive and corrective phases aligns with the core principles of Elliott Wave Theory.

The analysis highlights an invalidation level at 1.02197. Should the price drop below this level, the current wave structure would be invalidated, necessitating a reassessment of the analysis. This level serves as a critical threshold for confirming or disproving the current wave scenario.

Summary:

• The EURUSD currency pair is in the early stages of a bullish trend, with orange wave 1 actively forming within navy blue wave 1.
• This phase reflects robust upward momentum in the broader market structure.
• The subsequent orange wave 2 will introduce a temporary corrective phase before the bullish trend resumes.
• The invalidation level (1.02197) is a vital reference point to maintain the accuracy of the wave analysis and guide future market expectations.

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

EURUSD Elliott Wave Technical Analysis

• Function: Counter Trend
• Mode: Corrective
• Structure: Gray Wave 2
• Position: Orange Wave 1
• Direction (Next Higher Degrees): Gray Wave 3
• Details: Gray wave 1 appears completed, and gray wave 2 is now unfolding.
• Wave Cancel Invalidation Level: 1.02197

The Euro to U.S. Dollar currency pair is currently in a counter-trend corrective phase, as identified through Elliott Wave Analysis on the 4-hour chart. This phase aligns with the formation of gray wave 2, which follows the completion of gray wave 1 within the broader wave structure. Gray wave 2 is now actively unfolding, signaling a retracement within the ongoing trend.

The corrective nature of gray wave 2 reflects a temporary market adjustment before the expected development of gray wave 3, which will resume the broader upward trend. This progression adheres to Elliott Wave principles, where impulsive and corrective waves alternate to shape the overall market structure.

An invalidation level has been identified at 1.02197. If the price falls below this threshold, the current wave count will no longer be valid, requiring a reassessment of the wave structure. This level is a crucial benchmark for maintaining the validity of the analysis and guiding expectations for future price movements.

Summary:

• The EURUSD currency pair is undergoing a corrective phase represented by gray wave 2, following the completion of gray wave 1.
• This phase indicates a temporary pullback within the broader trend, with gray wave 3 anticipated to follow.
• The invalidation level (1.02197) serves as a key reference point for confirming the current wave scenario and preparing for future price movements.
• The analysis provides insight into short-term market adjustments while maintaining the context of a larger upward trend.

Technical Analyst: Malik Awais

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