Webinar: EUR/USD Surrounded by Important Levels
This is a recording of a webinar from December 22, 2016. To attend the webinar live obtain your free registration here.
In this webinar, we used technical analysis and namely, Elliott Wave Theory to identify trends and trading opportunities in main markets. It has been nearly one week since the Fed raised interest rates so we look at the potential for broad based US Dollar strength.
Dow Jones Industrial Average may experience a near term break from its blistering up trend. If a correction develops, support looms near 19,000-19,250.
EUR/USD may be in the early stages of a sell-off towards parity. We digested the near term bearish view and the near term bullish view. The December 11 low near 1.0520 is the key level to watch. Remaining below this level keeps much lower levels below 1.0350 on mind. However, the near term bullish view is in play so long as we stay above 1.0350. Both patterns suggest a strong move, we just do not know the direction.
We had a great question in the webinar about which currency might be the strongest against US Dollar and which currency might be the weakest against US Dollar.
AUD/USD and NZD/USD seem to be diverging patterns. The Elliott Wave pattern for AUD/USD appears as though we may need to clear out the .78 high. Prices are in a current support zone that extends down to .69.
NZD/USD might have just completed an ending diagonal pattern and may be in the middle of an extended third wave lower. If that is indeed the case, then Kiwi may visit .65 soon.
If you wish to learn more about Elliott Wave theory, grab our beginning and advanced guides here.
Or, if you wish to join Jeremy in his US Opening Bell webinars to discuss chart patterns on key markets and ask your questions in real time, register and join here.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.