Trading Forex pairs like EURUSD with the use of Elliott wave and basic technical tools.
EURUSD made a low at 1.04 level in the start of 2015 and since then this currency pair has been moving in big consolidation pattern in form of complex correction. As per Elliott wave, Complex correction connects 2 or 3 standard correction which includes Zigzag – Flat – Triangle or Zigzag followed by Flat or Flat followed by Triangle. In a complex correction, channels play crucial role which provides important support and resistance zone and accordingly one can make the trading strategies. Below research on EURUSD is taken from “The Global Waves Short Term Update” .
EURUSD daily chart:
(Part of research taken from “The Global Waves Short Term Update” dated 28th April 2017)
“EURUSD has been showing sideways action post the sharp rise. On daily chart this currency pair has reached towards important juncture.
Elliott wave: As shown in daily chart, since the mid of 2016 second standard correction is under formation in which intermediate wave A completed at the low of 1.03 levels and since then intermediate wave B is ongoing which is testing the crucial channel resistance. From here on it is only on move above 1.10 level that will indicate that upside trend is extending further. Failure to do that can reverse the trend on downside.
(60 mins chart is not shown here which is covered in research report)
Importance of Gapping action: In the last current week prices had huge Gap up opening and post the same it has been in sideways action. It has been testing 100 periods EMA which has provided good support in the up move. Hence this time it will be crucial to see how prices behave. On downside 1.08 is the crucial support.
In short, EURUSD trend remains positive as long as 1.082 is intact on downside. Move above …..”
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