Elliott Wave EUR/USD: It´s Holiday Season but the price….

Navigating the markets using Elliott Wave is the best thing that a technician can do, this theory is not meant to solve your life and make you rich, but with the right strategy will launch your trading to a new level. Understanding the market cycles is one of the keys to success in trading. In this article you are going to find our primary Elliott Wave count for the EUR/USD, then add your knowledge and trade the cycles with more confidence.

The wave “2” orange degree is active, the cycles that are inside this wave have taken the shape of an expanded flat. The waves ABC green degree are showing the cycles, note that the wave “B” ended above the start of wave “A” that is why is called an expanded flat. The invalidation occurs if the wave “B” travels beyond the 138.2% of wave “A.” Right now, the wave count is safe!

The wave “C” is on stage and promise to bring the price down to the Fibonacci retrace 88.6% (1.1734), this level was picked thanks to the harmonics rules. According to the Elliott Wave rules when the impulse (during waves 1,A and 5,C) shows a three wave sequence inside each leg, instead five waves, the price is likely to be building a diagonal wave. In this case inside wave “i” blue the price did only three waves, this hint that the market gave us will help to project the way the price will move.

In the next chart you will find our view, a short trade could be an excellent option to take if the price falls below 1.1840 and the target will be around 1.1743. The best trade will happen at the end of wave “2” orange, once the price reverses the target should be set at 1.2020.

Never trade without a plan, always prepare your trades and act according to your trading plan, money management is critical and never let a winner trade become a loser the success is in your hands, Merry Christmas and Happy New Year!

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