Weekly Waves 28 Feb: EUR/USD, Bitcoin, and US30

Our weekly Elliott Wave evaluation evaluations the EUR/USD, the Bitcoin crypto foreign money, and the US30 inventory index.

Sadly, the Russian invasion and warfare towards Ukraine has began since our final replace, with all of the catastrophe that comes together with such horrific acts. The monetary markets will stay unstable as nicely, however we’ll do our greatest to clarify our Elliott Wave evaluation on this article.

EUR/USD Breaks Backside However Not ABC Sample

The EUR/USD examined the earlier backside after a powerful bearish decline:

The bearish drop was robust and fell virtually 400 pips from prime to backside.
However the break of the earlier backside was solely small. Is that this a downtrend or half of a bigger bullish correction?
The present Elliott Wave evaluation favors a bearish ABC (inexperienced) correction inside the wave B (blue).
The correction can’t be an ABCDE triangle sample as we anticipated final week as a result of value motion broke under the underside. However value motion may nonetheless be half of a bigger ABC correction.
A bullish value swing would affirm the completion of a wave C (blue) inside 4 (pink).
To substantiate the bullish swing, value motion wants to interrupt above the resistance (orange) pattern strains.
A break under the underside signifies a right away downtrend whereas a break above the highest may point out the top of a downtrend.

The Bitcoin crypto pair (BTC/USD) failed to interrupt the underside as anticipated. Here’s what meaning for our Elliott Wave evaluation:

Value motion examined the Fibonacci ranges and former backside however didn’t push under the important thing assist zone.
Value motion in the end bounced on the 88.6% Fibonacci retracement degree.
The bullish bounce has been marked as a wave B (grey) after value motion accomplished a bullish wave A (grey).
A break above the resistance pattern line (purple) may point out a short-term uptrend (inexperienced arrows).
The principle targets are the Fibonacci targets the place a bearish bounce may emerge (orange arrows).
On the Fibonacci targets, value motion may full the wave B (inexperienced) and make a bearish bounce (orange arrow) for wave C (inexperienced).

US30 Breaks Backside and Begins Downtrend

The US30 has confirmed decrease lows and decrease highs now. Let’s evaluation:

The US30 inventory market didn’t make any bullish bounce. As a substitute, value motion made a bearish break under the important thing assist zone (dotted strains).
The bearish break may point out an extra decline of the downtrend (orange arrows).
Value motion may take a look at the assist pattern line once more.
A bullish retracement may happen to check the resistance ranges however ultimately, a decrease low and take a look at of the spherical 30,000 degree may happen.
A bullish bounce (inexperienced arrow) at that assist zone (blue field) is predicted.
A break above the resistance line (orange) may point out a failure of the downtrend.

Good buying and selling,

Chris Svorcik

The evaluation has been completed with the indications and template from the SWAT methodology (easy wave evaluation and buying and selling). For extra each day technical and wave evaluation and updates, sign-up to our publication