Euro at the End of Elliott Wave?


26 Jan - EURUSD Daily

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Hi All,

This is just a quick post on EURUSD. The chart above shows a potential Elliot Wave pattern on this pair. Although I’m not an E Wave expert, I do pay attention to them when one is screaming at me (like the one above).

Based on the cardinal rules below, I believe EURUSD has met the basic requirements to qualify.

  • Rule 1: Wave 2 cannot retrace more than the start of Wave 1.
  • Rule 2: Wave 3 can never be the shortest of the three impulse waves.
  • Rule 3: Wave 4 can never overlap with Wave 1.

Since it’s hard to determine where Wave C ends, Elliott Wave pattern on its own is not enough reasons for me to short EURUSD.

In fact, I have other reasons to give me a short bias which I have mentioned in my commentary on the 13th Jan (read article here). For Fibonacci users, there’s also an overlap of 50% Fib (drawn from high of Wave 1 to low of Wave 5) and 1.618 (drawn from high to low of Wave B).

Again, I don’t have a crystal ball here so I’m just going to follow my rules and no more.

Thanks for reading and have a good weekend!

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