EUR/USD Elliott Wave Analysis - March 09

By @ibtimes on

The chart shows my working count which I follow from months. It suggests that the fall started from 1.4718 is corrective in nature and is wave B of a flat correction. If I am right one should expect a rise in wave C for a re-test of the 1.4718 high. The big problem here is to find an entry level for a strategic long position with relatively close stop loss. As you know I tried several times to buy in the last few weeks for the expected rise to 1.5000, but when the market didn€™t rise I was forced to exit my long positions. Currently the short term picture is unclear and don€™t give any signal for a forthcoming sharp rise. However two additional facts make me think that the low is either seen or will be seen in a few days time. The first is the shown triple divergence on the MACD indicator which is a potential very bullish signal. The other fact is the very strong up-move in EUR/GBP started few days ago which should accelerate upon me and should target the parity between the Euro and the British pound i.e. levels of 1.0000. With an eye on the above written I entered a long position earlier today (I should admit that it is too risky at the moment)

Trading strategy: 07:18 EST; 12:18 GMT

Short position from 1.2690

Exit the short position at market (1.2590) with profit 100 pips

Buy at market (1.2590), stop loss - 1.2525, target - open

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.

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