Forex Trading: The Near Term Direction of the EUR/USD
Saturday, June 19th, 2010A few weeks ago I posted an Elliott Wave analysis of the EUR/USD foreign money pair.At the time it appeared that Forex Traders were moving right into a collection of Wave four patterns. That is still the situation as you’ll be able to see from a chart of the EUR/USD currency pair.
As my online forex trading is primarily based on pattern following, my trading advice at the time was to stay away and watch for the following down wave to W[3] and this continues to holds for forex pattern dealers.
The chart on my web site shows a recently accomplished minor wave 4 that then played out in futher fall within the worth action of the EUR to a lower low that I’m counting as the bigger W3 completion.
I anticipate the subsequent price move within the Euro to be a W(four) retracement to around 1.257 to 1.30.
This seems like a tradable alternative for some online forex traders and I’m still contemplating an entry based mostly on my trading plan (a trend based mostly forex trading strategy).
Nevertheless, I don’t like trading W4 retracements – they are not often very clean – usually resutling in a really uneven move to the eventual close on this price range.
Previously I have discovered that I’ve made some really good money on Forex Trading by following the W3 solely to then lose most of it in the choppy price motion of wave four .
The next move will be an impulsive move from the retracement range here to under the old W(3) – ie lower than 1.187 and may be very rewarding for forex traders who are trend following.
