Strategy for trading the EURO
|The EUR/USD shows a lateral behavior during the last weeks. The price is stuck between resistance 1.1180 and support 1.1054. Will it break down? The Elliott Wave analysis is a market map, like a GPS that allows you to reach the destination without getting lost. Imagine being able to navigate market cycles using any strategy, but increasing the likelihood of success. Elliott Wave is the tool that enhances all types of trading and helps the trader to improve the entries and exits in the market.
A group of traders gathers to discuss the possible scenarios of the EURO. Some say it will rise, while others that will go down and a small group in the corner of the room votes it will remain trapped in the sideways channel. Who is right? It is not possible to know the future of the price action with 100% success, but it is possible to have more than 60%/70% success through technical analysis. Let’s see what our Elliott Wave analysis says in the EUR/USD and build a solid trading plan.
Elliott Wave EUR/USD Analysis
In the four-hour chart, the price behavior is lateral, and it got stuck in the middle of so many news that has happened in recent weeks. While the stock market is reaching space after boosting like a NASA rocket, the EURO has failed to decide in which direction will take off. The chaos we see in the four-hour chart represents a corrective cycle in the Elliott Wave theory. We are in a triple Zigzag, denoted by WXYXZ waves in orange. Where the “X” wave is active and near completion, to find its end, the price must first fall beyond the 1.1054 support. Then when it goes back up and close above 1.1054, the trade setup will be ready for taking a buy trade.
Once the price takes off, the target is resistance 1.1180. This cycle would correspond to the orange “Z” wave. As long as the forecast is fulfilled, when the price exceeds resistance 1.1180, return and close below 1.1180, we will have the setup for a short trade. This short is the main trade, and its target 1.0880.
Elliott Wave EUR/USD Chart
Without Elliott Wave, everything is more difficult
Trading is a risky and challenging activity. Venturing to make decisions on the chart without using a map (Elliott Wave) makes everything more difficult and dangerous. With this technique, trades are planned for days before. It is never improvised, and an inventory is taken of each cycle that has passed. The trader looking for a way to keep his risk under control, effective trading plans, and orderly trading the Elliott Wave theory is the solution.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.