EURUSD Chart Technical Outlook completes a bullish 5 wave count at 1.0877
Fed’s Kashari and Goolsbee noted that it is possible the Fed will not cut this year if inflation stalls (stays high). This resulted in U.S. stocks moving to the downside and a run to safe-haven assets.
EUR/USD – We completed a bullish 5-wave count (Elliott Wave) at the 1.0877 swing high. That suggests that we are now within a choppy and corrective 3-wave pattern to the downside. Support is located at 1.0800 at 1.0776 (prime).
The four-hour chart highlights the pair building a reverse head and shoulders pattern.
Conclusion: with the four-hour chart highlighting a bullish reverse head and shoulders pattern, the medium-term focus remains on the upside. My preferred stance would be to buy a dip at 1.0776.
*Resistance: 1.0864 (supply), 1.0877 (swing high), 1.1028 (measured move) *
Support: 1.0800 (bespoke), 1.0776 (demand), 1.0724 (swing low)
