Elliott Wave Training

Are you looking to learn the Elliott Wave principle? Or maybe you already have some experience and want to find the ways to improve your skills better.

Click on this post for details:

http://wavepatterntraders.blogspot.com/2012/04/elliott-wave-training.html



Sunday, November 23, 2014

Elliott Wave Analysis of EURUSD

Do you remember the cheer leading for the EURUSD back in April - May 2014? All I read was EURUSD is going to 150 160, sell the US$ etc .

Back then I was looking for a major peak for EURUSD I posted a couple of charts on Stocktwits.

See here: http://charts.stocktwits.com/production/original_22387342.PNG?1398488058

Sentiment was really bearish for the US$, but the complete opposite pattern was also setting up for the US$ (aka DX). Its not easy looking to fade the majority at major turns, but this is where Elliotticians have a distinct advantage.

Fast forward to today, we now have the same setup for the US$, sentiment has completely reversed against the EURUSD, In May 2014 everyone loved EURUSD, but now everyone hates it.Yet we are actually looking for a major low for EURUSD, we feel there is a high reward and once again we find ourselves looking to fade the crowd, just like we did at the May 2014 highs.

There is a strong reward trade setting up for those that are looking to fade the majority.



A 5 wave advance appears to be close to ending on the DX, so subsequently we see a 5 wave looking decline on EURUSD, we can clearly see a large RSI divergence also setting up for both markets.



If we are correct (we think we are) then expect a larger reversal, a turn that the majority will miss, just like they missed in May 2014.

Target is 132-134, that's going to be a great trade for those on the right side, another way to trade the move is to sell USDCHF, either way we think a larger move lower is setting in for the US$

So the trade will be to sell DX (aka USD) and USDCHF, buy EURUSD and GOLD