The video above is a recording of a US Opening Bell webinar from November 25, 2019. We focused on the Elliott wave patterns for key markets such as EUR/USD, DXY, GBP/USD, USD/JPY, S&P 500, Ethereum and Bitcoin.
EUR/USD Technical Analysis: Bottom Looming Nearby
Though EUR/USD feel for the past several days, this corrective behavior is not unusual within the context of a larger rally. We published last week that EURUSD may move to 1.15 in the near term. EUR/USD is either falling in a small degree wave 2 or in a wave ‘c’ to finish off a larger degree wave 2. Either way, a rally may be searching for its footing from 1.1010 to 1.0950.
If this rally does develop, higher levels above the initial 1.15 target may be in play. Depending on how the structure unfolds, we could see EUR/USD eventually trade up to 1.18 and possibly new highs above 1.25.
Though not expected, this bullish scenario is invalidated on a break down below 1.0880.
Ethereum Price Rebounds at Support Level
The cryptocurrency markets have sold off hard in the past week down nearly 15%. Despite this deep cut, Ether rebounded near 61% retracement of the December 2018 to June 2019 up trend (grey horizontal line). This is bullish overall and aligns with our longer-term forecast for a large rally in Ethereum price to above $364 and possible new all-time highs above $1500.
A clean break above previous resistance near $198 would provide further evidence of the advance being underway.
S&P 500 Dances with All-Time Highs
S&P 500 continues to play near all-time highs. The Elliott wave pattern we are following is an ongoing zigzag pattern from the December 2018 low. The big tip off of the zigzag being the preferred pattern is the large triangle formation from May 2019 to October 2019. The position of this triangle within the rally suggests this is an (a)-(b)-(c) rally with the (b) wave triangle.
The subsequent rally underway now is a terminal wave. Once this wave finishes, S&P 500 will be at risk of a deep corrective wave possibly back to the December 2018 lows.
Recommended by Jeremy Wagner, CEWA-M
Elliott Wave for Beginners
After reviewing the guides above, be sure to follow future Elliott Wave articles to see Elliott Wave Theory in action.
—Written by Jeremy Wagner, CEWA-M
Jeremy Wagner is a Certified Elliott Wave Analyst with a Master’s designation. Jeremy provides Elliott Wave analysis on key markets as well as Elliott Wave educational resources. Read more of Jeremy’s Elliott Wave reports via his bio page.
Join Jeremy in his live US Opening Bell webinar where these markets and more are discussed through Elliott wave theory.
Follow Jeremy on Twitter at @JWagnerFXTrader .