Elliott Wave Analysis EURUSD, GBPUSD December 4 2015

EURUSD

We have seen some strong moves yesterday in the markets after the ECB did not deliver more QE, but rather only extended the time period to March of 2017, which caused some disappointment as traders and investors expected more from Draghi. As a result, stocks and USD fell, while EURUSD rallied. Interesting, the yields were up even when USD and stocks are up, which makes some divergence on the markets, but correlations may turn back to normal after the NFP today at 13.30GMT. That said, we suggest you to leave aside any new trades as we may see another huge move today.

On EURUSD we predicted a bounce ahead of the ECB as we were looking for an ending diagonal which is a reversal pattern. Notice that on the 15min chart the pair rallied with five waves, so more gains should follow after a pullback. Ideally wave B) is unfolding now that can be looking for a support near 1.0780 next week.

EURUSD, 15 Min

GBPUSD

GBPUSD is showing signs of a bottom after a sharp move up from 1.4893 that can be impulsive. Based on the latest price move, it looks like the market made wave (iv) and that 1.5180 can be seen in wave (v) that will complete wave A of a higher degree. That said, a new downward correction can be coming from a new high.

GBPUSD, 1H

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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