EURUSD Chart Technical Outlook correcting lower in the 5th wave, AB=CD correction seen at 1.0402
We have seen limited movement this week, with Tuesday’s and Wednesday’s price action held within Monday’s range (1.0571-1.0461). These candle formations are known as Indecisive Inside Bars. It is common to lack clear direction before a major data release. Tomorrow, we have the US non-farm payroll.
Bespoke resistance levels are located at 1.0772 and 1.1021. Elliott Wave analysis suggests we are currently trading within the corrective second wave of a bullish 5-wave count. We have a gap open of 1.0418 from November 22. Gaps tend to be closed. A full AB=CD correction will take EUR/USD to 1.0402.
Conclusion: the medium-term outlook is bullish. The preferred stance would be to join the upward trend after completing the corrective formation.
Resistance: 1.0597 (swing high), 1.0772 (bespoke, 3rd wave), 1.1021 (bespoke, 5th wave)
Support: 1.0418 (gap), 1.0402 (AB=CD), 1.0332 (swing low)
