Technical Analysis for EURUSD - Elliot Wave view from Morgan Stanley
18 April 2015, 06:11
3
857
15-year chart saying:
- Having accelerated to a low of
1.0463, going out of the lower
end of the multi-year trend
channel, EURUSD didn't
remain there for very long and
has since rebounded to a high
of 1.1036.
- However the longer term bearish picture remains and so, should the downside momentum return, we watch for breaks of the following key levels: 1.0463, 0.9613 then 0.8565.
The analysts comes in to a 2-year timeframe:
- EURUSD is still within a 5th
wave structure of the larger Cwave.
- The 5th wave has
formed a substructure, which
we would expect to complete
around parity. However we
expect some volatility before
getting there.
- A move above the 1.1052 level would mean that there is a larger 4th wave forming, suggesting a move towards 1.15 before the longer term downtrend continues.
10-day chart:
- EURUSD has begun to form
an impulsive structure from
the high of 1.1036.
- Currently
in a 4-th wave correction, we
look for the rebound to sell.
- We put a stop just above the 1.10 high since a move above here would be out of the top end of the recent range and we would have to reassess our trading strategy at this point.
