Published 28th October 2019

The EUR/USD counts best as an incomplete 3-wave swing from the early October low. Another spike to the upside could seal the deal. However, it must not break sustainably above the pale grey trend channel. 1.122 remains a critical resistance and most forms of upside extension are likely to face headwind around that level.

We remain with the conclusion that the paramount trend to the downside has not finished yet. The most likely path has not changed. It shows a strong 3rd of 3rd junction commencing soon. Nonetheless, timing may be a little different. Minuette wave (ii) could take another couple of weeks before completing.

All in all, we remain with our outlook and expect that the EUR/USD drops towards 1.05 before reaching a larger degree reversal.

The analysis above is a historical abstract of our EUR/USD Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.