Personally, I like to look at many different indicators. Classical charting patterns, momentum divergences, fibonacci retracements and extensions. However, one of the most interesting tools and a new favorite of mine to use is Elliott Wave Analysis - especially within Forex markets. Have a look at my take on the short-term EURUSD market below using Elliott Wave and let me know what you think...
EURUSD has struggled to break out of its trading range between 1.12-1.15 over the past several months. Most recently, it's been testing the lower bounds, but the following Elliott Wave count points for the EUR to make a strong push higher, potentially retesting the upper bounds over the coming month.
On the 4-hr candlestick chart, a Wave 3 Impulse of Primary Degree seems to be unfolding after the Wave 2 (A,B,C) correction failed to reach new lows below 1.1177.
Within that Wave 3 of Primary Degree, we seem to have just completed Wave 1 of Intermediate Degree and are within a Wave 2 correction. Some possible low points for Wave 2 are displayed on the fibonacci retracement of Wave 1. Wave 2 should not exceed the low of Wave 1 for this count to hold true. The 1.1206 low of Wave 2 could act as the low point, but if not, we would expect Wave 2 not to exceed 1.1186, otherwise this count should be revised.
My take: EURUSD should push higher from here. Stay tuned to see how this unfolds...
EURUSD has struggled to break out of its trading range between 1.12-1.15 over the past several months. Most recently, it's been testing the lower bounds, but the following Elliott Wave count points for the EUR to make a strong push higher, potentially retesting the upper bounds over the coming month.
On the 4-hr candlestick chart, a Wave 3 Impulse of Primary Degree seems to be unfolding after the Wave 2 (A,B,C) correction failed to reach new lows below 1.1177.
Within that Wave 3 of Primary Degree, we seem to have just completed Wave 1 of Intermediate Degree and are within a Wave 2 correction. Some possible low points for Wave 2 are displayed on the fibonacci retracement of Wave 1. Wave 2 should not exceed the low of Wave 1 for this count to hold true. The 1.1206 low of Wave 2 could act as the low point, but if not, we would expect Wave 2 not to exceed 1.1186, otherwise this count should be revised.
My take: EURUSD should push higher from here. Stay tuned to see how this unfolds...