Decoding EUR/USD With Elliott Wave
EWM Interactive | Apr 10, 2016 12:54AM ET
EUR/USD initially fell to 1.1326 last week, but then managed to return stronger and climb to 1.1453. There has been plenty of news during the last five trading days. From U.S. trade balance, through services ISM reports and FOMC minutes to initial jobless claims, mainstream analysts have been quite busy with trying to interpret all these pieces of information, in order to form an opinion. Fortunately, Elliott Wave analysts do not need to constantly look forward to the news. Because all an Elliottician needs is a chart and the Elliott Wave Principle. It could give traders a hint about the market’s intentions long before the majority has any idea. In order to prove our point, we will show you the forecast we sent to our premium clients on Monday, April 4th. It is given below. (some of the marks have been removed for this article)
Part of the explanations our premium clients had the benefit to receive with that chart, was the following sentence: “Once wave “b” is over, wave “c” to the north could take EUR/USD above 1.1440.” As visible, we thought wave “b” was going to end soon after touching the 38.2% Fibonacci level and give the start to another rally towards 1.1440 or higher. With the week already behind us, let’s see how the situation has developed. An updated chart is given below.
Wave “b” ended precisely at the 38.2% retracement level. Then, the bulls returned and took EUR/USD to new highs. On Thursday, April 7th, the exchange rate rose to 1.1453, thus exceeding our target level. That is why we trust the Elliott Wave principle. It often allows us to predict more than just one single move and not only in FOREX, but in other markets as well. What would it take for you to give it a chance too?
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