News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 87.30%, while traders in Wall Street are at opposite extremes with 79.27%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/VZ9AbYGY0C
  • Heads Up:🇮🇹 Retail Sales MoM (MAR) due at 08:00 GMT (15min) Previous: 6.6% https://www.dailyfx.com/economic-calendar#2021-05-07
  • Commodities Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Gold: 0.25% Oil - US Crude: 0.21% Silver: 0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/DGtzbHsIac
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/cC80QLzTNk
  • Forex Update: As of 07:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.26% 🇨🇭CHF: 0.17% 🇪🇺EUR: 0.14% 🇳🇿NZD: -0.07% 🇦🇺AUD: -0.10% 🇨🇦CAD: -0.16% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/NIonmU6Z9P
  • Indices Update: As of 07:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.98% France 40: 0.80% FTSE 100: 0.61% Wall Street: 0.09% US 500: 0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/CehidrXOWz
  • 🇫🇷 Industrial Production MoM (MAR) Actual: 0.8% Expected: 2% Previous: -4.8% https://www.dailyfx.com/economic-calendar#2021-05-07
  • 🇫🇷 Balance of Trade (MAR) Actual: €-6.1B Previous: €-5.1B https://www.dailyfx.com/economic-calendar#2021-05-07
  • Heads Up:🇫🇷 Industrial Production MoM (MAR) due at 06:45 GMT (15min) Expected: 2% Previous: -4.7% https://www.dailyfx.com/economic-calendar#2021-05-07
  • Heads Up:🇫🇷 Balance of Trade (MAR) due at 06:45 GMT (15min) Previous: €-5.25B https://www.dailyfx.com/economic-calendar#2021-05-07
US Dollar Grasps for Air as EURUSD Finalizes Triangle Wave

US Dollar Grasps for Air as EURUSD Finalizes Triangle Wave

Jeremy Wagner, CEWA-M, Head of Education

Using Elliott Wave Theory our analysis for US Dollar Index and EURUSD hints at one last pop of USD strength. Then, we will consider a multi-month US Dollar correction to begin.

The video above is a recording of a US Opening Bell webinar from July 23, 2018. We focused on the Elliott Wave pattern for EURUSD among other US Dollar pairs. According to Elliott Wave Theory, US Dollar may be near a multi-month top.

US Dollar Index Elliott Wave Analysis

The Elliott Wave chart for US Dollar Index suggests we may see a mild new high but the Dollar advance is quite mature. It appears we are in a 5th wave of a larger wave ‘A’. This 5th wave appears to be carving out an ending diagonal pattern. Therefore, we have clues the market is providing us that this wave is a terminal wave where US Dollar may take a gasp of one more breath of air. This market is susceptible to a swift retracement.

US Dollar Index chart with Elliott Wave ending diagonal indicator a reversal nearby.

For those forex traders keeping score at home, the Elliott Wave diagonal pattern began June 14 and is nearly complete. So long as US Dollar Index holds below 96.15, then the market is at risk of a reversal to 93.19 and possibly lower levels.

Elliott Wave ending diagonal pattern nearing completing suggesting a reversal of the US Dollar Index.

EURUSD Elliott Wave Chart Hints at a small relief rally

The EURUSD price chart continues to gyrate sideways in an Elliott Wave triangle pattern. We can count the pattern complete at today’s high so we are on high alert for a break lower out of the triangle.

The Elliott Wave triangle pattern is a symmetrical triangle and wave ‘e’ of the triangle has met the a-c trend line. We are counting this triangle as wave (iv) of a bearish impulse wave. Using wave relationships, we are anticipating a continued sell off to below 1.1510 that may reach 1.1350 and possibly 1.1100.

We have been short EURUSD with our first short entry at 1.2350 and our 2nd short entry at 1.2153 as prices hit our first target of 1.1554 on May 29. The Elliott Wave patterns still point towards lower levels so we hold we hold these short positions as wave (v) unfolds.

Elliott Wave forecast on EURUSD suggesting a dip below 1.15 in the coming weeks.

Elliott Wave Theory FAQs

What is an Elliott Wave ending diagonal pattern?

According to Elliott Wave Theory, there are several patterns to watch for. The diagonal pattern is a motive wave and carves in five waves. Each of the five waves are zigzags. Most of the time diagonals form in the 5th wave of an impulse of the ‘C’ wave of a zigzag or flat pattern. However, diagonals can form in the 1st wave or A position too.

We talk more about the construction and how to trade Elliott Wave diagonals in this hour-long recording.

If you are seeking further study into Elliott Wave Theory, read about our expert tips in our beginners and advanced trading guides.

How do I begin analyzing using Elliott Wave?

This is a common question of newer traders to Elliott Wave Theory. There are a couple of patterns I look for when starting my analysis. The Elliott Wave triangle pattern is one of those starting points because triangle form at certain spots within the Elliott Wave count. Therefore, if a triangle has been properly identified, we can then narrow the possibilities of the Elliott Wave count to begin to formulate higher probability patterns.

Learn more with “What is a Triangle Pattern in Elliott Wave Theory and How do you Trade it?

After reviewing the guides above, be sure to follow future Elliott Wave articles to see Elliott Wave Theory in action.

You might also be interested in…

What is an Elliott Wave impulse wave and how do you trade it?

Forex Education : How do you begin counting Elliott Waves?

---Written by Jeremy Wagner, CEWA-M

Jeremy Wagner is a Certified Elliott Wave Analyst with a Master’s designation. Jeremy provides Elliott Wave analysis on key markets as well as Elliott Wave educational resources. Read more of Jeremy’s Elliott Wave reports via his bio page.

Communicate with Jeremy and have your shout below by posting in the comments area. Feel free to include your Elliott Wave count as well.

Discuss these markets with Jeremy in Monday’s US Opening Bell webinar.

Follow me on Twitter at @JWagnerFXTrader .

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES