The market has been in a pivotal place since the US elections last November but how long will this decline last for... or is it all over? I wanted to highlight some key facts that I have spotted supporting that EURUSD is on the way up and Not going to fall below 1:1 mark as lot of people are expecting.
KEY FACTS: 1: 9 year Flat correction looks complete! A = 3 waves, B = 3 waves C = 5 wave with a key ratio of A vs. C equalling 100% (A key fib termination point). There is possibility that wave C could extend to 1.618% which is the next possible extension in a flat correction but I don't see that there will be enough momentum to the downside supporting this massive move to 0.820. 2: Triangle wave 4 - In EW theory, a triangle indicates that the next move after is a terminal move and an expected change of direction will follow which we've seen but has the final move finished? 3:MASSIVE Divergency seen on the weekly chart indicating that the USD is WAYYYY Oversold with the MACD resisting to cross to the downside. This is also seen in the daily and 6 hourly charts as well. 4: There is a gap yet to close at 1.2000 mark that has been opened since Dec 2014 (As highlighted by the blue line and red circle) 5: Lastly, we saw the NFP last Friday which was significantly positive for the USD yet market rallied against the USD. I don't fully know the implications of this but what we've seen in the past is that previous positive NFP's continued to rally in USD's favour which didn't happen this time.
Interesting times ahead guys but for now, I am remaining a Bull until proven otherwise.
Happy Trading all and feel free to comment / ask questions.