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Three USD Markets Point One Way!

By: Enda Glynn | Friday, December 1, 2017

We got an indication today of how much the idea of Bitcoin has penetrated society.
FOMC member Dudley says that the Fed is starting to think about its own digital currency.

I found that ironic,
Seen as the lions share of FIAT currency itself is digitally generated
through credit emission in the banking system and monetized government debts!

Simply put;
The USD is the biggest digital currency, and it dwarfs bitcoin by several orders of magnitude.
It seems that the FED itself does not realize its own game.

Lets get into those digital currencies then!

 EURUSD

30 min

4 Hours

Daily

My Bias: long term bearish
Wave Structure: downward impulse wave
Long term wave count: lower in wave (3) red

The 4hr chart in EURUSD now shows a bearish momentum setup again,
With RSI registering a momentum sell signal yesterday,
And now MACD is on the verge of the same bearish downside cross.

The short term chart shows a possible 5 wave pattern to the downside in wave 'i' pink.
wave 'ii' should trade out a three wave rise,
And is likely underway as I write.
The key level is now the low of wave 'i' at 1.1815.
A break of that level again will signal a third wave decline in wave 'iii' pink.
A large decline is now possible in the wave [iii] green.

For tomorrow;

Watch for a corrective recovery in wave 'ii', to complete below 1.1960.
This will complete a bearish Elliott wave signal.

GBPUSD

30 min

4 Hours

Daily

My Bias: short below parity in wave (5).
Wave Structure:  continuing impulsive structure to the downside in wave (5)
Long term wave count: decline in wave (5) blue, below parity

Cable is now sitting at the 61.8% retracement level of the previous wave [i] down.
The price rise in wave (c) brown has exhausted its upside momentum in wave [ii].
At this point it is time that the price turns back down into wave [iii] green.
The initial target for wave [iii] green lies at 1.2400.
given by the Fibonacci extension.

For tomorrow;

I am actively looking for an Elliott wave signal to the downside to form off the recent highs.
a break through support at 1.3320 should signal the turn into wave [iii].

 USDJPY
 

30 min

4 Hours

Daily

My Bias: LONG
Wave Structure: rally in wave [C]
Long term wave count: wave [C] is underway, upside to above 136.00

USDJPY has made an initial move off the lows in a possible developing five wave pattern to the upside.
A break above resistance at 112.71 will be the first bullish indicator.

The 4hr momentum setup is now fully bullish again,
With a bullish centerline cross registered in both RSI and MACD.

As with the other USD cross rates,
The USD looks like it is about to strengthen against the yen also.

By Edna Glynn

Author: Enda Glynn

Enda Glynn
bullwaves.com

Enda Glynn

I class myself as an Elliott wave trader now, but that's not how I started out though! It took me a long time and a whole lot of pain, to finally understand what drives the price and how to use Elliott Wave correctly!

I have been trading for years and I have tested every trading system and strategy under the sun! I used to pick entry points at random based on emotion or news events or something I heard on TV! It did not take long to destroy my capital! I have blown out my account balance before, and I had to start again,

from scratch!

Believe me, I am well acquainted with failure in trading! Im sure that the above scenario is pretty familiar to you too. We have all been there. About 10 years ago I discovered The Elliott wave Principle and its method of market analysis. Since then, I have spent years learning, testing and trading, using the wave principle as the backbone of my analysis. I even went to college to study macroeconomics and econometrics. I graduated with honours degree back in 2012. The financial market knowledge and statistical edge I gained after my degree added another level to my trading. The difference in my trading approach using the wave principle, compared to before, is like night and day.

The price started to move "my way" more and more often. The wave model, offers me a lens to view market action through, which no other form of analysis can do. Elliott wave analysis, helps me answer four key questions when I am contemplating a trade:

• What direction the price is trending.
• How far is this trend likely to go.
• Where can I enter a trade with the best risk reward ratio.
• And most importantly, at what point am I definitely wrong?!

The wave principle helps me improve my trade entry, tighten up my money management and in turn increase profitability. Seeing the waves unfold before your eyes is a very rewarding experience, It is almost like peering into the future! That is how the wave principle helps my trading, and that is why the wave principle will improve your trading. It took a long time to finally master Elliott Wave Principle. After over a decade of hard work, research and learning I can call myself an expert in the field. I regularly contribute to major trading communities at FXStreet, Forex Factory, Traders Planet. I am a chief Elliott Wave analyst at HumbleTraders.

Copyright © 2016-2017 Enda Glynn