Hello traders! Today we will talk about emerging markets(EEM) and EURUSD.
As you can see in the first chart, there's a positive correlation between emerging markets and EURUSD. Of course, there are no tick by tick correlations, but the current wave structure it's telling us that we may see a bigger recovery in the upcoming days/weeks.
Emerging markets can be trading in a three-wave (A)-(B)-(C) recovery up to 61,8% Fibonacci retracement and 46 area, especially after that break out of the corrective channel, so in our opinion EEM may easily stay in the bullish trend.
At the same time we can see strong and impulsive recovery on EURUSD, which is telling us that the temporary bottom can be in place and a bigger three-wave (A)-(B)-(C) correction can be underway up to 1.15 - 1.18 area, mainly because of break out of the wedge pattern (ending diagonal).
Notice that these are daily charts and they may take some time to completely unfold, so don't get confused on the smaller time frame charts. We just want to give you an idea, where the markets can be headed long/mid-term.
Be humble and trade smart!
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Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Hey, thanks a lot for your great work.
Do u think that in long term period of 2020 we can have a big moves like 2017/04 until 2018 or drops like 2018/04 to 2018/06
Or we may have continue choppy market in small moves and pull backs?
ho33ein
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what happened to the correlation of eurousd and btcusd ? btc going down and euro going up ?!
ew-forecast
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@ho33ein, As we said in this article, there are no tick by tick correlations, so correlation with BTCUSD has temporary lost, but once BTC completes its deeper correction, it may catch EURUSD up later.
Do u think that in long term period of 2020 we can have a big moves like 2017/04 until 2018 or drops like 2018/04 to 2018/06
Or we may have continue choppy market in small moves and pull backs?