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EUR/CAD Update: Elliott Wave Analysis Still Going Strong
Learn what tools helped EWI's Currency Specialty Service to stay one step ahead of this forex market's biggest near-term turns
By Nico Isaac
Fri, 13 Apr 2012 18:30:00 ET
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If investing in stock markets is akin to riding a slow moving camel through the open desert, then speculating in forex markets is like riding a wild, bucking rodeo bronco. The trick is to stay on through every major near-term twist and turn before face-planting it into the ground below.

Doing that requires a forecasting method based on objective chart patterns; cue Elliott wave analysis. Because each of the 13 known Elliott patterns adheres to specific rules and guidelines pertaining to wave depth and length, you can not only hold on to a volatile forex market for a short-term jolt -- it helps you to hold on for the "Full 8 Seconds."
 
Today we're walking through one such example of how EWI's forex-focused Currency Specialty Service used Elliott wave analysis to stay in the saddle for the recent down-up-down ride in the Euro/Canadian Dollar cross rate (EUR/CAD).
 
The bucking chute opens: On March 30, Currency Specialty Service identified a bearish ending diagonal Elliott wave pattern (a terminating pattern) in the price chart of EURCAD. At 4:37 AM (EST), we published an urgent intraday update that wrote: "It is possible to count the rally as complete... a swift reversal to the beginning of the diagonal is forecast." (To see the complete account of this foremost EURCAD call, click here)
 
In the one week that followed, the EUR/CAD fulfilled its bearish Elliott script in a powerful descent that erased three weeks of gains.
 
Then on April 4, our 24-hour-a-day Currency Specialty Service began to see the light at the end of the five-wave decline via the first chart below and this 1:27 AM intraday update:
 
"The decline has met its first objective. Either it is finished, and a push up... lies ahead; or else, as I suspect, there's a little more downside. If wave (5) is finished, then a bounce will carry to 1.3198."
 
 
 
One of the principles of Elliott wave analysis is that 5-wave moves are followed by 3-wave corrections in the opposite direction. The next chart shows how this scenario played out in the real time in EUR/CAD:
 
 
In its 5:34 AM intraday update, the April 11 Currency Specialty Service set the stage for a reclamation of the downside and wrote: "We are topping now as the count suggested and a decline should begin from current levels."
 
The final chart in our series shows the complete EUR/CAD set-up, from top-to-bottom-to-top, and how Currency Specialty Service held on strong through to the very end.
 
 
 
 
 
 
Discover what a team of Elliott wave experts can do for your forex trading -- EWI's Currency Specialty Service delivers 24-hour-a-day coverage of the world's most-traded currency pairs, so you'll know every Elliott wave implication of every market move.
 
 

 

 

 
 

Tags: currency, Elliott wave, Elliott Wave trading, euro, forex, forex trading
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EWI's Currency Specialty Service delivers 24-hour-a-day coverage of the world's most traded currency pairs so you'll know every Elliott wave implication of every market move. Subscribe now and get instant access to actionable forecasts for:

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