EUR/USD reached our target of 1.1450-1.1500. Minimum expectations are met for the dip and a bull rally may begin from nearby levels.
The video above is a recording of a US Opening Bell webinar from October 8, 2018. We focused on the Elliott Wave and patterns for many USD forex markets like EUR/USD, Dollar Index, GBP/USD, AUD/USD, USD/CHF and others like natural gas. USD has satisfied near term expectations for strength and may embark upon several weeks of weakness.
EUR/USD ELLIOTT WAVE CHART SHOWS AN UP WAVE MAY BEGIN FROM NEARBY LEVELS
For the past month, we have been warning of an eventual dip to 1.1450-1.1500 in EUR/USD. Now that price has entered this zone, what is next for EUR/USD?
The Elliott Wave picture we are following is that EUR/USD is about to begin wave (c) of an (a)-(b)-(c) zigzag pattern higher. If this wave begins from nearby levels, then EUR/USD may run to 1.19-1.22 in the coming weeks.
We anticipate this move higher will be an impulse wave or diagonal pattern. If the pattern is successful in developing, then we can more identify the potential for a topping level as we approach it.
Sentiment has shifted towards the positive which signals a bear run. Current live sentiment for EUR/USD is +1.40.
There is another wave count that could drive EUR/USD to 1.12 to 1.14, but this sell off would be temporary prior to embarking upon another bullish run up to 1.18. The higher probability Elliott Wave counts we are following hint at an eventual test of 1.20-1.22. Whether that run starts from current levels or slightly lower levels has yet to unfold.
DOLLAR INDEX EYES A RETEST OF 93.80
Circle wave ‘b’ continues to unfold to the downside. It appears the current Elliott Wave for US Dollar Index is that wave (b) of circle ‘b’ has just finished. That means wave (c) of circle ‘b’ is getting ready to begin.
Since August 27, we have been forecasting a US Dollar Index rebound to above 95.70. So long as DXY remains below 96.98, then we can anticipate a bearish run to press below 93.80 and possibly to 92.