By Elliott Wave International
EURUSD: Why Recent Ups and Downs Are NOT Random
How Elliott wave analysis can bring some certainty into the oh-so-uncertain world of forex trading
How do you know what “your” forex market will do tomorrow?
You don’t. We don’t. Nobody does. All anyone can do is guess. But some guesses are more “educated” than others.
In a recent interview, Elliott Wave International’s Senior Currency Strategist, Jim Martens, explained why for the past almost 30 years his favorite method to “guess” at the market’s trend has been Elliott wave analysis:
“Markets are doing what they are supposed to be doing: inflicting the most pain on the most number of people. Markets fool the most number of people at the most unexpected moments, but by tracking Elliott wave patterns, sentiment (and the news) you can prepare yourself.
“What separates Elliott wave fans from the rest of the public is that the public has no basis for determining when the trend may be over.”
Let’s take a look at a recent example: namely, price action in EURUSD on April 5-7.
Since the mid-March low in EURUSD, Jim and his Currency Pro Service team have been tracking a “messy” Elliott wave pattern in the euro-dollar: a correction. “Messy,” because corrections are just that: choppy, overlapping, often directionless moments when it’s just plain hard to make heads or tails.
Yet, under Elliott wave analysis, even corrections have rules and guidelines. There are 13 known corrective Elliott wave price patterns, and if you nail what part — and of which pattern — you find yourself in right now, you can make a strong case about where the market will go tomorrow.
Case in point — on Sunday, April 5, Jim Martens posted this bullish euro-dollar forecast in his Currency Pro Service:
Continue reading EURUSD; Not Random