Back in 2015, on December 19th, the majority of market analysts expected EURUSD’s post-ECB gains to be completely erased very soon, especially with the FED having raised interest rates for for the first time since 2006. Instead of going with the flow, we published “Time for EURUSD Bulls to Shine Again?”. The article’s purpose was to warn the bears to calm down, because the Elliott Wave Principle suggested the bulls are likely to have the upper hand, regardless of what Draghi and Yellen were doing or saying. The chart below shows how EURUSD looked like almost two months ago.
That is one of the two bullish wave counts, which made us say that as long as the invalidation level at 1.0540 is safe, “EURUSD could be anticipated to climb to 1.1100 or even higher.” Those of you, who have been watching this pair closely, know how things went, but let’s refresh your memory with the next chart.
The expected rally did not start immediately. The exchange rate decided to stay in a range between 1.0710 and 1.0990 until the end of January. However, 1.0540 was never in danger, so all we had to do is to keep calm and wait.
Then, in the beginning of February, EURUSD woke up from lethargy. The recovery resumed and EURUSD not only reached, but exceeded the 1.1100 target by a large margin, climbing as high as 1.1248.
This situation is another great example of the Wave Principle’s ability to help disciplined and patient traders achieve their goals in the FOREX market.
What to expect from now on? Is EURUSD going to continue even higher or the resistance at 1.1250 would turn out to be too strong for the bulls to breach? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order the one due out next Monday at our Premium Forecasts section. Stay ahead of the news in any market with the Elliott Wave principle.