EUR/USD Could Move Lower

Published 11/18/2021, 08:03 AM

Markets are consolidating as the US dollar index saw some limited upside, even against JPY as yields turned slightly lower in recent sessions. But this may change later today during FOMC speeches. From an Elliott Wave perspective, we see the US dollar index in a corrective pullback; ideally, that's going to be a three-wave set-back within wave four that can stabilize at 95.00-95.25.

EUR/USD is trading lower with an extended and accelerating price action away from 1.1607 that looks like a wave 3) based on characteristics rather than a wave C). In the 4-hour chart, we think there will be more weakness after a pullback in wave 4), ideally down to 1.1180 area for wave D) on a daily target that can belong to a triangle, while the price is below 1.1512 invalidation level.EUR/USD Elliott Wave analysis.

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