Elliott Wave Analysis: EURUSD and GBPUSD
EURUSD moved nicely higher yesterday after the ECB press conference that finally sent EURUSD out of the range. As such, we believe that Euro will continue higher within current wave (v) towards 1.3680. Once those levels are tested we need to be aware of a bearish reversal in minimum three legs. As per Elliott Wave Principle, after every five waves move correction takes place. But break of 1.3500 price level will suggest that in Euro there is already top in place.
GBPUSD is moving higher after we called a completed wave (iv) last week at 1.5950 in our members area. So if that was wave four then we know that market is now in wave five, final leg within an impulsive rally that has began back on Aug 28th. This wave five is also a motive wave, which means it must be subdivided by five smaller sub waves. Therefore, we expect more upside in the next few days. Ideally we will see a test of 1.6300 region, from where we could see a bearish reversal, into a larger corrective pull-back. A divergence on the RSI also suggests that pair is in final stages of a recovery. But lets focus on one direction at the time; for now that is up to 1.6300.