EUR/USD has a number of alerts flashing and it might be a risky week for the pair as ECB hits the wires on Thursday. EUR/USD staged a reversal evidenced by way of a night star candlestick formation on August 29. This sample carved close to the July 2012 low. As a outcome, it’s a compelling sample suggesting a correction decrease could also be imminent.
Despite this sample, EUR/USD merchants proceed to be bearish the pair since April 18. Though the extent of bearishness has ebbed at occasions, 70% of merchants proceed to be internet bearish EURUSD. Used as a contrarian signal, that is a bullish sign. Check out the live trader sentiment reading.
The Elliott Wave pricing mannequin we’re following does present the technical sample is incomplete to the upside. Taking all the items above, the bearish night star formation, the bullish sentiment sign, and the unfinished bullish Elliott Wave sample, we anticipate a correction looming, although it might show to be short-term.
According to Elliott Wave principle, it seems we completed the third wave (inexperienced iii wave on the chart) at first of August. Third waves of an impulse
SOURCE: Daily Forex Signals – Read complete story here.