EURGBP Strength Could Be Deceptive

ECB’s policy decision produced fireworks in EURGBP on Thursday. The pair initially fell to 0.7651, but then rose sharply to 0.7848. Trouble is, this gives us no clue about what to expect from the pair next. Is it a “buy” or a “sell”? Fortunately, the Elliott Wave principle eliminates the “flip a coin” approach, by…

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EURUSD Reversal Seen Way Before ECB

On December 3rd, EURUSD rose sharply from 1.0540 to above 1.0980, following the European Central Bank’s decision to lower the deposit facility rate to -0.30% and ECB’s willingness to extend its asset purchasing program to the end of March 2017 or beyond, if necessary. But did we need to know what the ECB was going to do,…

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Greece? Greek Stocks? Why Not!

Greece is in trouble. The biggest trouble in its financial history. The country just missed a payment to the International Monetary Fund and is now asking its people whether to continue paying its debts or not. The banks will not open for a second consecutive week, because, as “The Telegraph” claims, they are down to…

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ECB’s Quantitative Easing (QE) and Velocity

Why ECB quantitative easing program may not achieve the much needed results? If we follow the economic theory, an increase in the money supply should cause inflation and therefore price inflation. But here comes the tricky part. Most economists do not make the difference between these two concepts. Inflation is an increase in the overall money…

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How the Euro Was (not) Saved

July 24th 2012. The Eurozone is trembling in an unseen debt crisis. In the same time the Euro barely manages to stay above 1.20 against the US dollar, after a sell-off of almost 30 cents in just a little over a year. Concerns about the survival of the whole European Union are growing alongside with…

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EURUSD bear-trap after ECB

People see EURUSD‘s recent plunge as a result of ECB’s decision about interest rates. We at EWM see it as a natural post-triangle thrust in wave 5 down. Many experienced traders have the following motto: “trade against the news”. Well, the news is highly bearish for EURUSD, even in the long term. However, in or…

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USD index before ECB

ECB’s decision about interest rates can always bring some surprises into the markets, but it won’t hurt if we look at the USD index before the news tomorrow. The Elliott Wave Principle has the ability to absorb news quite often, so let’s see what the charts have to say. As shown on the 1-hour chart…

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