• 2 days Markets Unfazed As Inflation Hits 13-Year High
  • 3 days How the Token Economy is Disrupting Financial Markets
  • 5 days FBI Investigating 100 Types Of Ransomware Attacks
  • 7 days Fed Ends Corporate Credit Emergency Lending Program
  • 9 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 10 days The Real Reason Your 401k Has Been Lagging
  • 11 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 13 days The Market Is Ripe For Another GameStop Saga
  • 16 days Senate Grills Big Banks Over Pandemic Opportunism
  • 17 days Cannabis Has A Major Cash Problem
  • 18 days Ransomware Netted Criminals $350M In 2020 Alone
  • 19 days Russia Is Taking On Google
  • 20 days Chinese Regulators Deal Another Big Blow To Bitcoin
  • 21 days Ohio Residents Brave Vaccine for Chance To Win $1M
  • 23 days Inflation Is Coming. Are You Prepared?
  • 24 days 3 World-Shaking Trends Investors Need To Watch This Year
  • 24 days Travel Might Get Another Supersonic Disruption
  • 25 days The World Is Running Out Of 6 Key Resources
  • 26 days $15/Hour Minimum Wage Might Happen Naturally
  • 28 days Money-Laundering Binance Probe Report Adds To Bitcoin Woes
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

  1. Home
  2. Markets
  3. Other

EURUSD Bulls Beware - Upside Limited in Every Elliott Wave Scenario

Long term chart

EUR/USD Daily Chart
Larger Image

Short term chart

EUR/USD 30-Minute Chart
Larger Image

My Bias: short in wave 3 blue.

Wave Structure: downward impulse wave 1, 2 blue

Short term wave count: lower in wave iii brown

Long term wave count: lower in wave 3 blue

Important risk events: EUR: N/A. USD: CB Consumer Confidence

This weeks price action in EURUSD was a charachterised by price range contraction, but, given the larger wave count, this should not last long.

EURUSD is caught in an extended minor correction in a possible wave 'ii' brown, going on this weeks trade.

There are a few scenarios, as with every correction.

Scenario 1:

We could be witnessing a flat correction, if so the price will rise to challenge 1.0483 again, before turning down.

Scenario 2:

Or wave ii brown is already complete, and the price is declining in wave iii brown.

Or, Scenario 3:

I have shown another possible wave count, circled in red, on the short term chart which fits the price action as well as the operating wave count. The outcome of all wave counts is the exact same, A large decline is on the cards here, and we are on the cusp of it.

Either way, 1.0353 is critical, if that level gives way, the price could decline quickly. My test short position was stopped out this week, but I will be trying again, possibly next week, if the right opportunity emerges.

The main take away from the current price action is that the combined probability of any significant rally in EURUSD is very small right now. The new year could well herald some serious selling.

 

Back to homepage

Leave a comment

Leave a comment