Elliott wave analysis of EUR/USD for December 3, 2020


EUR/USD broke over the long-term descending trendline. It has dominated the long-term picture since July 2008. With the clear break above this trendline, we should look for a continuation higher towards at least 1.2852 in the coming weeks/months. If also the equality target at 1.2852 is broken the next upside target will be seen at the 1.618 times extension target at 1.3825.

The long-term cycles continue to support the upside until May 2022 and possibly even to December 2024. That does not mean that downside pressure cannot be seen but there should only be temporary set-backs in the uptrend.

Trading recommendation:

The long-term picture points higher towards at least 1.2852 and long EUR positions should be favored.

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