Slow Summer Trading-Elliott Wave Overview on EURUSD and S&P

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Despite a higher US stock market yesterday, the other markets, like currencies, some commodities, and metals are still sideways, even after Bernanke’s testimony. This tells me only one thing; Summer trading-ranged price action due to low liquidity. With that said, don’t be surprised if market will be unidirectional for the rest of July.

On the EURUSD, we see slow and overlapping price action which we think is a corrective pattern, most-likely a triangle. If that’s the case then wave (e) will look for a support around 1.3080 in the near term. A critical level however is at 1.2986 if maybe triangle will be even more complex and longer in time.

eurl july 19 2013 1h elliott wave technical analysis for currency trading forex

S&P was higher yesterday, but prices sold off during the Asian trading hours. Notice that the move from 1665 was made in three legs. Three wave structures are corrections, so we think that wave 4 is still underway, which could either be a flat or maybe a triangle if the price goes sideways for the next few trading days. Support comes in at 1660-1665.

sp july 19 2013 1h for technical elliott wave trading

Trade well,

Grega

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About Author

Grega Horvat
Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, 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 www.ew-forecast.com 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.
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