close icon

No EURUSD Surprises After Yellen

When the market opened on Monday this week, EURUSD was trading in the area of 1.1330, after s significant rally from 1.1045 just two weeks earlier. Most traders have heard that the trend is always more likely to continue. That is true except when it is not, as EURUSD demonstrated. It is now evident that the pair is going to close the week around 1.12. Instead of continuing higher, it fell sharply today, so blindly following the trend is not always the best decision. And before you blame the Fed’s chairwoman Janet Yellen for the sell-off, take a look at the chart below, which was sent to our premium clients before the markets opened on Monday, August 22nd. (some of the marks have been removed for this article)
eurusd 22.8.16
As visible, five days ago we were expecting EURUSD to start declining and eventually breach the lower line of the above-shown price channel, drawn through the bottoms at 1.0951 and 1.1045. Knowledge of the Elliott Wave Principle and a couple of charts was all that was needed to turn bearish on EURUSD at the start of the week. Now, let’s see the same chart, updated.
eurusd 26.8.16
The exchange rate began falling almost immediately. It was, however, moving slowly and choppy. So, something was needed to trigger the anticipated move. Janet Yellen’s Jackson Hole speech today did just that. See, it was not the reason for anything, because the market was already flashing bearish signals five days earlier. It was just the catalyst, which unleashed the plunge we have been waiting for.
The trend is always more likely to continue, except when it is not. The Wave Principle has the ability to help traders identify the point of reversal, before the speech-waiting majority has any idea. We hope you are not checking when the next “big announcement” is scheduled for.

What to expect from now on? What is the bigger picture saying? Is EURUSD going to continue even lower or the support near 1.1200 would turn out to be too strong for the bears 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:

USDTRY Heads South After Central Bank Decision

Turkey finally took a decisive step towards taming the double-digit inflation, which has been destroying the Lira’s value for years. The country’s central bank lifted the benchmark interest rate to 15%, up 475 basis points from its previous standing. USDTRY fell as low as 7.5031 earlier today, on track for a second consecutive week of…

Read More »

GBPNZD Can Slide to Sub-1.9000 In Coming Weeks

What will EURUSD, USDJPY and USDCAD bring next week? That is the subject of discussion in our next premium analyses due out on Sunday! GBPNZD exceeded 2.0270 in mid-August, but the bulls could not keep the positive momentum. A month later, the pair fell to 1.9055, losing 6% in the process. And just when it…

Read More »

Ahead of EURUSD ‘s 280-pip Drop in September

EURUSD had been on a tear since mid-March when it bottomed out at 1.0636. Nearly six months later, on the first day of September, the pair exceeded the 1.2000 mark. The bulls seemed firmly in control and the Fed’s money printing suggested further losses ahead for the dollar. However, years of experience had taught us…

Read More »

Ahead of GBPUSD in Both Directions. Now What?

GBPUSD had a good run over the past six months, climbing from its 1.1412 March low to as high as 1.3483 last week. The pair is now back below 1.3000 after the latest portion of Brexit-related mess. Later in this article we will share our view of where the Pound is headed against the dollar,…

Read More »

USDTRY Set to Complete 12-Year Impulse Pattern

The U.S. dollar has been steadily climbing against the Turkish lira since 2008. Ten years later, in 2018, USDTRY reached 7.1500 on the back of geopolitical tensions and President Erdogan‘s reckless political decisions. In May 2019, however, the pair was down to 6.0600 and it looked like the Lira’s plunge might be finally over. Unfortunately,…

Read More »

EURUSD Up 420 Pips in a Month as Uptrend Resumes

The inevitable seems to be happening to the U.S. dollar. After record-breaking liquidity injections by the Fed in response to the COVID-19 crisis, the greenback is weakening across the board. The U.S. dollar has recently been declining against its major rivals, including the Yen, the pound and the euro. EURUSD, the most traded Forex pair…

Read More »

GBPJPY Bears Aiming at 120, Before Giving Up

Whether it is because of Brexit or not, GBPJPY has been trading below 160.00 ever since the referendum in June 2016. The pair has been locked in a wide range between 156 and 124 for four years now. Last week, it closed the session at 134.66, down from 138.84 at the open. In order to…

Read More »

More analyses