EURUSD : Ending Diagonal, Running Triangle and Elliott Wave counts

The common currency surged post ECB meet in the early December meet as the ECB president disappointed market by going for only 10 bps cut for deposit rate to -0.30% where market was expecting -0.40%. Now the common currency is waiting for the FED outcome which is set to release on 16th December 2015.

Before the ECB meet, the pair already started to form an ending diagonal pattern and post meet it surged from the lows of 1.0506 till 1.0981 levels. Later it moved in a sideways formation which looks like running barrier triangle pattern (a-b-c-d-e). It seems that it has either completed wave e of triangle or one minor leg is pending. The confirmation will only be obtained if prices move above 1.1045 levels, taking out cluster of resistances. 

A move above 1.1045 will open positive possibilities and prices can test the level of 1.1070 followed by 1.1240 levels which is 61.8% retracement of wave a.

In short, the bias remains positive for EURUSD as it can test the level of 1.1240 levels going ahead.

EURUSD hourly chart


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