A shift sentiment is evident given these current market conditions. It's highly plausible that USDCHN will continue to build upward momentum as price may shape a new bullish Elliot wave. It is paramount to understand that the shaping of this pair is logarithmic in nature.
I don't feel 100% confident about the wave count, however, I am more interested in seeing if there is any significance with a divergence between the trend in crude oil and currencies that are influenced by oil export/imports.
//Elliot Wave Analysis//
USDMEX is finishing wave a and moving into wave b.
18DEC2020 COT Report indicates a shift in sentiment with an increase of 21,641 short contracts, bringing the net position of non-commercial traders to -3,227.
Price could push down towards the end of wave 4 at 17.44984, but no further. If the...
Sorry for the busy chart.
It can be observed in 02 MAR 2020 that price had been consolidating into a strong demand market. Volume had hit levels of 18.889 million resulting in a fairly neutral candlestick formation. EU had successfully closed outside of the channel in July sending a strong signal of a trend reversal. If price action can close above and/or retest...
Waves ii and iv are zones of price consolidation that can be revealed/confirmed by the FRPV indicator. In my previous chart, I failed to mention distributive options for wave v, that being a truncated fifth wave ending at the 1.618 fix level due to exhausted selling pressure (a failed perception of the market created by my own bias), what we see is a full-wave...
Price is rejecting off the weekly trendline. It's looking as if the 5th wave will be truncated from the exhausting selling pressure. FRVP and the 20 EMA indicate that price will retrace to the point-of-control, beginning wave a.
Elliot Waves - A Market Aesthetic
An Emergent Feature of Equity Markets and Market Psychology
Developed by Ralph Nelson Elliot in the 1930s, the Elliot wave principle became a tool for technical analysis used to chart and forecast financial market cycles by identifying extremes in investor psychology and other factors. The Elliot wave principle is a concept...