WaveTrack International

Elliott Wave Financial Price Forecasting

EURO vs. USD – Success Pattern of the Month

by WaveTrack International| October 30, 2015 | No Comments

SUCCESS! - Pattern of the Month - EUR vs. USD

SUCCESS! – Pattern of the Month – EUR vs. USD

A very impressive pattern sequence that we identified this month is shown for the Euro/US$ (published in WaveTrack’s Elliott Wave Compass report). By mid-October, the Euro had already advanced more than three cents from its late-September low and was threatening the mid-September high of 1.1461. Conventional technical analysis at this point might have implied the possibility of upside acceleration once the 1.1461 high would be broken. But our Elliott Wave analysis, based on proprietary fib-price-ratio measurements, helped to almost pinpoint the achieved high and forewarn of an accelerative decline.

Track Record: Forecast - 14th October 2015

Forecast – EUR vs. USD – 14th October 2015

The reasoning behind it was based on a thorough examination of the price action of the last eight weeks and, equally important, of the last several months. When looking back to the May ’15 high, we were able to identify a three price-swing decline into the July low followed by a three price-swing advance into the August high. Basis the preceding (larger) five wave advance into the May high, it was clear (for an Elliottician) that this 3-3 sequence would have to be followed by a downswing. Moreover, as the correction following the impulse to 1.1468 was in a 2nd wave position, it was also clear the downswing would have to take the shape of an impulse decline (because a 3-3-3 can only occur as part of a 3-3-3-3-3 triangle – and this can happen only in a 4th wave).

RESULT! EUR vs. USD price development as per 28th October 2015

RESULT! EUR vs. USD price development as per 28th October 2015

Thus, we were ready to pull the trigger by mid-October when the Euro was attacking the 1.1461 high. Measured targets defined the 1.1450-1.1517 zone as a highly probable reversal area. Look how the Euro reacted to the predetermined fib-price resistance levels! It reversed from the 1.1496 high and almost instantly took up so much downside momentum that after a couple of days it was clear something big had occurred! Under Elliott Wave theory, it was clear that the Euro had now entered the 3rd wave within the five wave decline from 1.1712; and this five wave decline was the finalising leg of the previously described 3-3 sequence. What to expect next is shown on the chart – enjoy the ride into lower lows!

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Category: Currencies, Elliott Wave, Elliott Wave Charts, Elliott Wave Patterns, Elliott Wave Principle, Euro / US$, fib-price-ratio, Fibonacci Trading, Financial Forecasting, forex, FX, WaveTrack International

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WaveTrack International is a financial price forecasting company dedicated to the Elliott Wave principle and work of the R.N. Elliott. Clients include Investment Banks, Pension Funds, Total/Absolute-Return/Hedge Funds, Sovereign Wealth Funds, Corporate and Market-Making/Trading institutions and informed individuals -- & just about anyone who is affected by directional price change.

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