EUR/USD completion of triple corrective pattern.

EUR/USD is one of the most watched and traded currency pair. From December 2013 till May 214 this currency pair has moved in a range of 1.35-1.40 with less movement. Normally when such movement occurs one need to understand that the asset class is under pattern formation.

From the below daily chart, it is very clear that prices are moving up in a rising channel formation. The pair reversed from the resistance of the channel which opens negative possibilities. Even prices have given a bearish break in a rising wedge pattern which clearly indicates that EURO against DOLLAR is going to depreciate further.

As per wave perspective, prices are moving in a triple corrective pattern (a-b-c-x-a-b-c-x-a-b-c) from July 2012 to May 2014. After completing 2nd wave x at 1.31 in a simple zigzag pattern, prices then moved up and completed wave a at 1.3832 followed by wave b in a simple zigzag at 1.3304 and wave c which was an ending diagonal pattern was completed at 1.3993 after the statements of Mario Draghi last week. Currently it is moving down in impulse wave.

In short, our bias for EUR/USD is negative and can move down further till 1.35 levels which is the support of the channel.


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