close icon

EURUSD: Elliott Waves Versus Deceptive NFP Reports

The last two weeks have been exceptionally good for EURUSD so far. The pair rose from as low as 1.1045 on August 5th to 1.1322 as of yesterday, August 16th. The plunge to 1.1045 came as a result of the latest NFP report, which turned out to be very good for the dollar… at first. Then why did EURUSD rise so much? Could the recovery be predicted? If you were to rely on the news, you would be caught completely off guard by euro bulls. That is why we count on the Elliott Wave Principle, which removes the need to wait for such external factors as news and events, and allows us to extract information directly from the market. We, in turn, present this information to our premium clients in the form of weekly market updates. The following chart was sent to them on Monday, August 8th, before the markets opened.
eurusd 4h 1
By applying Elliott Wave analysis on the 4-hour chart of EURUSD, we came to the conclusion that despite the sharp decline after the NFP report, the pair is likely to continue higher, as long as the invalidation level at 1.0951 was safe. “This is not the time to join the bears” was the opinion we shared with our premium clients. Eight trading days later, let’s see how the situation has been developing.
eurusd 17.8.16 update
The bulls took the wheel almost immediately, not allowing the bears to even think about threatening 1.0951. The Elliott Wave principle once again helped us predict what was coming in EURUSD and take advantage of it. This is an example of one of the many cases, in which the wave analysis correctly forecast future price moves. However, it admits the outcome is never 100% guaranteed. That is why it provides specific price levels to guide and tell traders if they are wrong. By trading the news, on the other hand, you could stay wrong forever.

What to expect from now on? What is the bigger picture saying? Is EURUSD going to continue even higher or the resistance near 1.1320 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your Elliott Wave analysis due out every Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.

Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Elliott Wave Setup Helps EURUSD Add 325 Pips

EURUSD has been under pressure for over two years now. The pair reached 1.2556 in February 2018, but has been making lower lows and lower highs ever since. Yet, the past couple of weeks painted a different picture. Between May 18th and May 29th, the euro surged 325 pips against the U.S. dollar. In those…

Read More »

EURGBP Pattern Signals Bullish Reversal Ahead

EURGBP has been in free fall since March 19th, when it rose to 0.9500. A month and a half later now, the pair is hovering below 0.8730, down 8% from the peak. Is the downtrend going to continue or should we expect a change of direction? That is the question we hope to answer in…

Read More »

GBPUSD Aiming at 1.30, but May Tumble to 1.21 First

Not long ago, we shared our long-term view of GBPUSD. In our opinion, the down-phase of the pair’s cycle, which is in its 13th year now, is almost over. One last dip to 1.1000 is likely to be followed by a major bearish reversal and the start of the next up-phase. Now, we are going…

Read More »

British Pound ‘s 13-Year Downtrend Almost Over

The thirteen-year period between 2007 and 2020 started with the biggest crisis since the Great Depression and is about to end with the biggest crisis since the Great Depression. Between the two, the longest economic expansion on record took place. And while stock markets around the world reflected that recovery, some currencies have been in…

Read More »

Ahead of the Move: EURUSD Adds 500 Pips in a Week

At the start of last week EURUSD was trading below 1.0700. The pair had fallen from as high as 1.1496 in just two weeks as coronavirus cases in Western Europe kept climbing disturbingly fast. And while fundamental traders had every reason to expect more weakness, the charts were sending a different message. The Elliott Wave…

Read More »

GBPUSD Completes Pattern, Uptrend to Resume

When we last wrote about GBPUSD Britain was still an EU member. Today, that is no longer the case as the country left the Union on January 31st. On the other hand, the pair is roughly unchanged, currently hovering around 1.2900. In fact, GBPUSD has been tracking a classic Elliott Wave pattern. Take a look…

Read More »

GBPUSD To Resume Uptrend Once Correction Ends

The Brexit saga continues as Boris Johnson’s re-election puts Britain firmly on the path of leaving the EU on January 31st 2020. And while the results of the June 2016 referendum caused a crash to 1.1650 by October 2016, GBPUSD is trading near 1.3100 today. The chart below reveals the structure of the recent recovery…

Read More »

More analyses