EURUSD Remains Bullish While The S&P Trades Higher –

2

Markets are in a sharp reversal after yesterday’s risk-on rally. We can see some USD recovery this morning but for now that’s only on the intra-day basis. The larger picture is still down for the buck, so technically nothing changes.

The only difference may be in a shift between strong commodity currencies to a temporary bearish picture. But an important part here is »temporary«. Before we go to some wave counts, lets take a look on correlations first.

On the chart below we can see a comparison between the S&P, EURUSD and AUDUSD. We can see that AUDUSD is the weakest and EURUSD the strongest so based on this relationship its better to put money into the EUR rather than in to AUD if of course you assume that the S&P will stay in bullish mode.

sp VS EUR VS AUDoct 23 2013 1h elliott wave analysis technical chart forex trading graph

Get the 5 most predictable currency pairs

About Author

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!

2 Comments

  1. Your chart shows a stunning rise in the EUR/USD as well as the AUD/USD.

    On Tuesday, October 22, 2013, financial marketplace trading evidenced liberalism’s peak nation state sovereignty, seigniorage, and moral hazard based prosperity, as its Krugmanomics here, and Abenomics, as well as Draghinomics, over there.

    Liberalism attained peak prosperity on global currency carry trade investing and a pursuit of yield. Both of liberalism’s spigots of investment liquidity were open full wide. Said another way, the financial markets were under total leverage as evidenced by the Euro, FXE, Ultra Junk Bonds, UJB, and Leveraged Buyouts, PSP, rising strongly, and the US Dollar, $USD, falling strongly lower.

    Currency traders bought all of the major world currencies, DBV, as well as emerging market currencies, CEW; and the Japanese Yen, FXY, rose only a meager 0.05%, enabling a stunning leverage to those invested long risk assets, such as Biotechnology Stocks, IBB, Nation Investment, EFA, such as the Philippines, EPHE, and European Financials, EUFN, such as the National Bank of Greece, NBG, and Ireland’s Bank, IRE.

    The Interest Rate on the US Ten Year Note, ^TNX, traded lower to 2.51%, stimulated investors to chase yield, and resulted in a strong rise in credit, with Ultra Junk Bonds, UJB, 0.75%, Junk Bonds, JNK 0.25%, Aggregate Credit, AGG 0.35%, Government Bonds, GOVT, 0.40%, and Floating Rate Note, FLOT 0.08%.

    The monetary policies of the world central banks, have produced fully produced Krugmanomics here, and Abenomics. as well as Draghinomics, over there. The strong rise in Major World Currencies, DBV, and Emerging Market Currencies, CEW, drove World Treasury Bond, BWX, and International Corporate Bonds, PICB, to new highs.

    The Steepner ETF, STPP, traded a strong 2.1% lower, reflecting the flattening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX.

    The flurry of currency leverage and debt leverage caused the US Dollar, $USD, UUP, to plummet to close at 79.29.

    The precious metals at times trade inversely of the US Dollar; and that was the case today on the sharp trade lower in the US Dollar, $USD, as Gold, GLD, rose 1.8%, and Silver, SLV, rose 2.2%, stimulating Gold Miners, GDX, and Silver Miners, SIL, to rise 4.4%. The strong rise in Commodity Currencies, that is the Euro, FXE, and the Australian Dollar, FXA, caused Copper Miners, COPX, Global Industrial Miners, PICK, and Coal Miners, KOL, rose strongly. Gold, GLD, and Silver, SLV, are in breakout, but risk trading lower on soon falling currencies.

    World Stocks, VT, rose a solid 0.7%. Sectors rising strongly included Biotechnology, IBB, Solar Stocks, TAN, Design Build, FLM, Pharmaceuticals, PJP, Global Consumer Discretionary, RXI, and Global Industrial Producers, FXR, Spinoffs, CSD, and Transportation, XTN, And Yield Bearing Sectors rising included Utilities, XLU, Global Utilities, DBU, Real Estate, IYR, and Global Real Estate, DRW, Global Telecom, IST, as well as Leveraged Buyouts, PSP.

    The strength of liberalism’s peak currency carry trade investing, is seen in investors taking Ireland’s CRH, IR, and COV, and Netherland’s, ST, AER, ING, LYB, and PHG, as well as Germany’s ABB, and SI, strongly higher. And the strength of liberalism’s peak chasing of yield is seen in investors taking Tupperware, TUP, Cinemark, CNK, Ichan, IEP, Targa Resources, TRGP, and Vimpel, VIP, strongly higher.

    Asia Excluding Japan, EPP, and the Eurozone, EZU, led World Stocks, VT, higher. In Asia, the Philippines, EPHE, New Zealand, ENZL, Turkey, TUR, Thailand, THD, Malaysia, EWM. and Australia, EWZ, KROO, led the way higher. In Europe, Germany, EWG, EWGS, the Netherlands, EWN, and Italy, EWI, led the way higher. Argentina, ARGT, continued to a new rally high.

    Both Ireland’s Bank, IRE, and the National Bank of Greece, NBG, rose strongly, to new rally highs, as the European Financials, EUFN, rose, taking the Eurozone Stocks, EZU, higher, all on the, EUR/JPY, carry trade, which to close higher at 135.98, as the Euro, FXE, at 136.34, and Yen, FXY, at 20.71.

    The vertical rise seen in the chart of the EURUSD is truly stunning, and the parabolic rise in European Financials, EUFN, as well as nation investment in Ireland, EIRL, and its bank, IRE, marks the zenith of Liberalism, as the age of investment choice, which was based upon schemes of currency carry trade investing, and central bank credit.

    The Speculative Leveraged Investment Community, consisting of the Too Big To Fail Banks, RWW, Investment Bankers, KCE, Stock Brokers, IAI, European Financials, EUFN, Emerging Market Financials, EMFN, Chinese Financials, CHIX, Regional Banks, KRE, and Asset Managers, such as Blackrock, BLK, have produced a terrific moral hazard based peak prosperity.

    The strong trade lower in the US Dollar, $USD, to close at 79.29, and the strong rise in Nation Investment, EFA, and Global Industrial Producers, FXR, marks the zenith of liberalism’s Milton Friedman Free to Choose Floating Currency Banker Regime, and the achievement of peak democratic nation state sovereignty, and banker driven seigniorage.

    Out of a soon coming Financial Apocalypse, foretold in bible prophecy of Revelation 13:3-4, authoritarianism’s Beast Regime of regional governance and totalitarian collectivism will provide regional nannycrat sovereignty and their diktat driven seigniorage.

  2. Pingback: EURUSD Remains Bullish While The S&P Trades Higher – Elliott Wave Analysis - James Invest | James Invest