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On EURUSD we have seen a strong sell-off yesterday after the FED said that rates are rising  in 2015. So, traders are positioned for long USD on speculation for higher rates which is obviously good for the buck. On the intraday chart of EURUSD we see a bearish impulse in progress with room for more weakness in the short-term as decline from 1.2570 should unfold in five waves, but we see only three waves down, where blue wave (iii) was extended. As such, traders should be aware of even lower EURUSD in sessions ahead. Resistance for blue wave (iv) comes in near 1.2340-1.2380.

EURUSD 30min Elliott Wave Analysis

EURUSD Elliott Wave Analysis December 18 2014 technical trading currencies

USD is also looking bullish against the JPY, but we still do not have any complete five wave cycle since the pair bottomed at 115.55. However, it looks like this could happen today if we get another high soon that would make an extended red wave iii). In that case we would be very confined that USDJPY completed a larger corrective decline and that the bullish waves are back in progress. We could then even consider some longs.

USDJPY 1h Elliott Wave Analysis

USDJPY Elliott Wave Analysis December 18 2014 technical trading currencies