It a Sunday today and it a great time to look at the weeks coming and other weeks that will follow. We had a good week this past week we had a lot of trades going our way and we still holding on lots of other pair which I won’t show here. So without wasting time let get to the first pair and see what market possibilities that we see.
EUR/USD has been in a sideways movement for a while now which shows that we are in a corrective pattern on a 4-hour chart. Looking at the length of the pattern we are in a complex one so we need to trade it very carefully. Looking at the chart above starting from the invalidation line we see that we had ABC, with B being a triangle.so on completion of that ABC we get our wave (W) then we got small wxy which left us at (X). I believe we are in wave (Y) now which will take us into the price area of 1.18335 to 1.18967 which will finally complete the complex pattern. Than the EUR/USD could drop and complete the wave 5 of wave c. so we will be looking for a buy next week on this pair.
Well, what better way than to look at the correlation pair of EUR/USD pair as next pair. Those who don’t know what correlation means basically it just relationships between two currency pair, have you ever notice how come when one currency pair is bullish the other one is bearish most of the time, well that what currency correlation mean. EUR/USD and USD/CHF are most of the time opposite each other if one is bullish the other is bearish. So it no surprise here that our forecast is seeing it as bearish. Looking at the chart we can see we had a bearish wave (W) which was separated into smaller wxy and we had corrective wave (X) which was also wxy. Please note that it looks like this whole complex pattern is an irregular flat pattern on a bigger time frame. Looking at the chart now we are at the start of wave (Y) which will take us bearish for a while maybe a month or so. If you can get this move and it going our way imagine how many pips we going to score. But we just have to wait and see how it unfolds.
Another major pair we looking at today is the GBP/USD this pair has not been behaving well in simple Elliot wave rules, you really need the experience to get this pair right using Elliot wave principle. Starting from invalidation point we can see that we had a leading diagonal wave 1 or wave A that we had 3 corrective waves, which are wave 2 or wave B. We believe that we are in wave 3 or wave c now which should take us above end of wave 1 or wave A. Next week we will be looking at bullish trades on this pair until invalidation is reached then we will redo our counting, just watch our forum section for any update on the pairs.
This pair surprised a lot of traders including myself last week when it went bullish while we were expecting bearish movement. So I had to look at it on the bigger time frame to understand what happened, and it was just an error on my side, we can see on a bigger time frame that we are in wave B, which is a zig-zag. On the chart we had 5 waves up which made wave A that we had 3 waves down which completed wave B that we are in wave C now which is what you see in the chart above, we had leading diagonal wave 1, that wave 2, I believe last week we finished wave 3 but that could be wrong but looking at the chart we are in end of wave 3 and beginning of wave 4 or we are still in wave 3. But we should get wave 4 to correct down as 3 waves then get wave 5 of wave C to finish wave C. Only then we will get bearish market movement of this pair.
EUR/CAD is stuck in a corrective pattern as well, we had 3 waves up which makes the wave (W) then we had wave A, we believe that we are in wave B now which should complete its own wave (y). Than we will get wave C which will complete wave (X). On completion of wave (X), we get the start of wave (Y) in the bullish way which should take us above the end of wave (W). Please note invalidation point is for the bearish trade if you sell in end of wave B and start of wave C.
Today I’m coming with the complex pattern only, sorry if you are not getting them straight away but will practice you will master them. This pair has been on a corrective pattern for a really long time. Looking at the chart we can see we had wave (W), then Wave (X) which completed in that channel on top. From there we are expecting a drop in a bearish way. We expect a 3 wave drop which will take us very long way down bearish. This is a good trade as well if you can get it now and have balls to hold it for a month or so you could earn a lot of pips if it goes our way.
Guys, we will be updating the charts as they happen on the FORUM so don’t be shy to ask questions there. we are will update also if we see more trading opportunity that mean more money for everyone.