2018 has so far been a terrible year for EURUSD bears and the month of October made no exception. The pair climbed to 1.1815 in late-September, but could not maintain the positive momentum. By October 31st it was down to 1.1302, losing over 300 pips that month alone. But in the Forex market traders cannot…
Solving USDJPY Riddles with Elliott Wave Hints
Unlike the stock market, where a profitable company with a growing market share will eventually grow in value in the long-term, the Forex market can be a real riddle. Macroeconomic, political and country-specific factors are fighting for influence over currency rates in the $5-trillion-a-day market. USDJPY is one of the most closely followed pairs as…
GBPJPY: Bearish Reversal Expected Near 151.00
GBPJPY has been in recovery mode since it touched 139.90 on August 15th. On September 21st, the pair climbed to a multi-month high of 149.72, but fell to an intraday low of 146.51 yesterday. As of this writing, the Pound is hovering around 147.90 against the Japanese yen. The time is appropriate to apply the…
USDCAD Unreliable Resistance Identified in Advance
After slightly exceeding 1.3000 on October 8th, USDCAD retreated to 1.2926 two days later. Given that the pair has been declining since the 1.3386 top registered in late-June, assuming the bears are returning was quite justified. In addition, there was a declining trend line, which had previously led to significant selloffs on two separate occasions.…
USDJPY Gave Us a Road Map Three Months Ago
There is a reason why it is called “trading” and not “bottom/top picking”. The latter is literally impossible even with the best trading tools and techniques. Even the Elliott Wave Principle, which we consider to be the best method for price behavior analysis, cannot tell us the exact price level at which the market is…
GBPCAD ‘s Rally Needs a Healthy Pullback
October is shaping up to be a good month for GBPCAD bulls. The pair dipped below 1.6600 on October 2nd, but quickly reversed to the upside for a recovery of over 470 pips so far. Earlier today the Pound climbed to as high as 1.7070 against the Canadian dollar. However, extrapolating the current trend into…
A Week of Trend Reversals in the Forex Market
The Forex market was very interesting to observe last week. Major news like the Non-Farm Payrolls report in the U.S., the new trade deal between the USA, Canada and Mexico, and Bank of Japan’s determination to keep fighting deflation all contributed to an eventful five days in the world’s largest market. News and events is…
USDMXN: Is the 18.50 Support Going to Hold?
It has been over two months since our last article about USDMXN. On July 27th, the Forex pair was trading slightly above 18.6150. The Elliott Wave Principle then suggested “a corrective rally to 19.50 – 20.00 is about to interrupt the downtrend in the near future.” The logic behind our optimism was simple: there was…
EURUSD: When the Fed Supports the Elliott Wave View
Following a recovery of more than 500 pips in a little over a month, EURUSD suddenly crashed from 1.1815 to 1.1570 last week, erasing half of its recent progress in just a few days. The selloff came after the Fed raised its benchmark interest rate for the third time this year on Wednesday and promised…
Fibonacci Support Sent USDJPY Skyrocketing
Earlier today, USDJPY climbed to 112.88, which is just 30 pips shy of its 2018 high at 113.18 reached in mid-July. Just two weeks ago, on September 7th, the pair fell to as low as 110.38, which means it has gained as much as 250 pips in just 11 trading days. How come? Was there…
USDJPY Changes Direction Twice in Two Days
It has been a volatile week for USDJPY. The pair started the session on a positive note and rose to 111.76 on Wednesday. However, instead of keeping up the momentum the bulls quickly exhausted their options and allowed the bears to breach the previous swing low at 110.69 and drag USDJPY down to 110.38 on…
Emerging Markets Crisis Not to Blame for EURUSD ‘s Drop
Following several very strong days that saw EURUSD appreciate from 1.1300 to 1.1734 between August 15th and 28th, the European currency is under pressure again. The pair is currently hovering under 1.1590 after a decline to 1.1530 yesterday. As usual, it did not take very long for the after-the-fact explanations for the Euro’s weakness to…
As USDJPY Plunges, Ralph Elliott is Smiling Somewhere
It has been a wild ride for USDJPY traders last week. The pair opened at 111.31 on Monday and rose to 111.83 on Wednesday before crashing to 110.69 by Friday. It still managed to close the session above the 111.00 mark, but that is hardly a big relief for breakout traders, who thought joining the…
Elliott Wave Pattern Sent EURUSD Higher, Not Trump or Cohen
What a week for EURUSD bulls! The pair is moving sharply up after weeks or even months of suffering. After opening at 1.1437 on Monday, the European currency climbed to almost 1.1623 against the U.S. dollar, before retreating to its current whereabouts near 1.1560. It is interesting to note that Donald Trump’s trade war, which…
Riding EURUSD ‘s 1100-Pip Elliott Wave Crash
The way the year began gave EURUSD bulls a lot of reasons to hope for a great 2018. On February 19th, the euro was trading above 1.2400 against the U.S. counterpart, following a phenomenal 2017. Angela Merkel had just successfully negotiated the terms of her fourth mandate as a Chancellor of Germany and Donald Trump’s…
