
The Non-Farm Payrolls report for the month of May was a total disaster. Only 38K jobs added versus 164K expected. If you ask the majority, it is no surprise that EURUSD rocketed after the news was out. The problem is that the majority had no idea what to expect from EURUSD until the NFP was out. Elliott Wave analysts, on the other hand, had a pretty clear view. And we can prove it with the chart below, which was sent to our premium clients before the markets opened on Monday, May 30th.
A week ago, we were able to count the entire decline from 1.1616 in EURUSD as a textbook five-wave impulse. According to the Elliott Wave Principle, every impulse is followed by a correction in the opposite direction. That is it! The chart above was all we needed to turn bullish on EURUSD on May 30th, five days before the NFP report was out on June 3rd. The updated chart below shows how EURUSD looked like, when the week was over on Friday.
“…this is not the time to join the bears, since wave b) … to the upside could be expected to begin soon” was our advice to our premium clients at the start of last week. The Wave principle once again demonstrated one of its most valuable abilities – to help traders correctly predict market reversals. That is one of the reasons we will continue to rely on it. Are you going to wait for the next big piece of news, instead?
What to expect from now on? What is the bigger picture saying? Is EURUSD going to continue even higher or the resistance near 1.1350 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.