Weekly Waves 24 October: EUR/USD, Bitcoin and Natural Gas

Our weekly Elliott Wave analysis reviews the EUR/USD daily chart, the Natural Gas daily chart, and the Bitcoin weekly chart.

EUR/USD Trapped Between 0.95 and 1.00

The EUR/USD remains trapped between the 0.95 support level and parity (1.00) resistance zone:

1. The EUR/USD did make a bullish bounce (wave A orange) as expected.
2. But the bullish rebound was milder than we anticipated. Therefore, we changed the expected Elliott Wave pattern to a bearish ABC (orange).
3. Another bounce at the previous bottom near 0.95 could confirm the end of wave B (green) and the start of wave C (green).
4. The wave C could end up as a bullish 5 wave pattern finishing at the previous top near the 23.6% Fibonacci level.
5. A downtrend continuation is expected once the ABC (green) completes the wave 4 (yellow).

Bitcoin

Bitcoin (BTC/USD is moving sideways between $19k and $20 resistance:

1. BTC/USD is awaiting a break up or down.
2. A bearish breakout (orange arrow) below the support zone (blue) could confirm a drop towards the $15k and $12k support zones.
3. A bullish breakout (orange arrows) above the $20 resistance zone (orange) could indicate a retracement towards the 23.6% and 38.2% Fibonacci levels.
4. A deeper bullish push upwards places this bearish Elliott Wave analysis on hold.
5. The bearish swing could complete a wave 5 (green) of wave C (yellow) of a wave W (pink) of wave 2 (gray).

Natural Gas Strong Bearish Drop Approaches $5 Support

Natural Gas is dropping lower quickly as we anticipated last week:

1. The bearish decline has been marked as a wave 3 (green).
2. Price action could however stop at the support zone (blue) and make a bounce.
3. A mild bullish correction marks the end of wave 3 (green) and the start of wave 4 (green).
4. A bearish breakout (orange arrow) below the corrective pattern indicates a downtrend continuation towards the next Fibonacci target.
5. This could complete wave 5 (green) of wave 5 (yellow) of wave 3 (pink) of A (gray).
6. A deeper bullish retracement above $6.4 places this bearish Elliott Wave analysis on hold.

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter