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EUR/USD (Forex): How to Forecast Market Moves Before They Occur
Not every Elliott wave forecast works out. But the method's objectivity still trumps most discussions about "market fundamentals."

by Vadim Pokhlebkin
11/4/2009 7:15:00 PM

News stories move the markets -- that's what just about every investor believes. But can you predict what the market will do before the news is released? Let's look at a fresh example: the actio in the EUR/USD on November 4, when the Federal Reserve Bank announced its latest decision on the U.S. interest rates.

Filed Under: Currencies, forex, eur/usd, Federal Reserve, interest rates, u.s. dollar
Category: Currencies

EUR/USD (Forex): Big Moves, But What's the Reason?
Despite all odds, the U.S. dollar is showing serious strength.

by Vadim Pokhlebkin
10/27/2009 3:00:00 PM

Early on October 26, the exchange rate between the U.S. dollar and the euro (and the most widely-traded forex pair) began an out-of-the-blue slide from near $1.50. If the dollar's dramatic show of strength in the midst of all the doomsday scenarios surprised you, you're not alone. Anyone looking at the Monday morning forex headlines was likely caught off guard. What's behind the dollar rally?

Filed Under: u.s. dollar, Currencies, forex, eur/usd, euro, china, foreign exchange reserves
Category: Currencies

U.S. Dollar: Kiss Goodbye or Reversal at Hand?
Remember how bearish people were on oil ten years ago? Today, it's the U.S. dollar.

by Jim Martens, Senior Currency Strategist
10/13/2009 11:45:00 AM

Remember how bearish people were on oil ten years ago? Today, it's the U.S. dollar. This recent headline on DrudgeReport.com, "Kiss the Dollar Goodbye," complete with a picture of a smooching President Obama, is a fair reflection of the sentiment toward the buck. But here's what it likely means...

Filed Under: u.s. dollar, oil, obama, currency, forex
Category: Currencies

The New Carry Trade
How long the new "carry trade" funded by low U.S. interest rates may last?

by Jason Farkas
10/12/2009 4:45:00 PM

As the recession has taken hold, short-term U.S. interest rates have been pushed down to .25% or lower. This encourages those who want to borrow to do so in U.S. dollars, which is exactly how the low Japanese interest rates of the past boom cycle encouraged borrowing in yen. But markets can move fast when they head down, and when a carry trade unwinds, few things move faster.

Filed Under: us dollar, australian dollar, euro, yen, Federal Reserve, Bernanke helicopter, EUR/JPY, eur/usd, AUD/USD, AUD/JPY, interest rates
Category: Currencies

Death of the Dollar, Again: Before You Mourn, See This Chart

by Nico Isaac
10/7/2009 4:15:00 PM
If you want the latest news on the U.S. Dollar Index, try a search under its new ticker symbol, RIP. -- as in, "rest in peace." Let the record show: In the early morning hours of Tuesday, October 6, the mainstream financial community officially declared "The Demise of the Dollar" (The Independent).
Filed Under: us dollar, dollar, greenback, currency
Category: Currencies

VIDEO (Forex): Which Elliott Waves Are Best For Trading?
Nothing helps you learn faster than watching a good teacher.

by Vadim Pokhlebkin
9/29/2009 8:00:00 AM

We have many resources at elliottwave.com that help you learn Elliott wave analysis -- but nothing helps you learn faster than watching a good teacher. Watch this free 6-minute clip from a live webinar Elliott Wave International's Senior Currency Strategist Jim Martens held for his subscribers last year. Here's what Jim talked about...

Filed Under: Currencies, forex trading, George Soros
Category: Currencies

VIDEO: What Elliott Wave Software Should I Use?
An interesting insight into commercially-available Elliott wave programs.

by Vadim Pokhlebkin
9/22/2009 12:30:00 PM

"What Elliott wave software do you recommend?" is one of the most frequent questions our readers send us. Watch the editor of Elliott Wave International's Currency Specialty Service Jim Martens answer this question in this free 6-minute classic video using charts of the U.S. Dollar Index and the dollar/yen as examples.

Filed Under: elliott wave, U.S. Dollar Index, yen
Category: Currencies

EUR/USD (Forex): And So, We Wait
Do you have the discipline to stand aside for days between forex trades?

by Vadim Pokhlebkin
9/18/2009 4:30:00 PM
Trading the EUR/USD has not been easy lately. The exchange rate between the euro and the U.S. dollar (the most widely-traded currency pair) hasn't made much net progress, but it's made up for that in spades by choppy, volatile, sideways-moving market action. When the going gets tough, the tough get going, right? Before you say yes, read these thoughts...
Filed Under: dollar, euro, forex, Euro dollar exchange rate, Currencies, trading
Category: Currencies

U.S. Dollar: Another Piece of the Puzzle?
Individual investors can be wrong about a market trend. But countries?

by Vadim Pokhlebkin
9/15/2009 10:30:00 AM
Unless you're a financial professional with a keen interest in international bond markets, you probably didn't even notice an obscure news item from Germany last week. Yet it may speak volumes about the coming trend change in the U.S. dollar.
Filed Under: Currencies, forex, u.s. dollar, dollar Index, euro, eur/usd, foreign exchange
Category: Currencies

Death of the U.S. Dollar?
Not so fast: We've been here before.

by Vadim Pokhlebkin
9/9/2009 12:15:00 PM
One look at the latest U.S. dollar news headlines, and it seems like the buck has nowhere to hide. The buck is toast. Stick a fork in it. It's done. But wait -- we've been here before.
Filed Under: u.s. dollar, euro-dollar exchange rate, forex, currencies, euro, eur/usd, usd, eur, jpy
Category: Currencies

Forex: Don't Trust Your Trading to Headlines
A reliable currency market indicator doesn't change with the wind.

by Vadim Pokhlebkin
8/25/2009 4:30:00 PM
"Fundamental" indicators change with the wind because they apply only to what has already happened. It's easy to "explain" past market action -- try predicting it instead. With Elliott wave analysis, you can. As this chart shows, there is a potentially major opportunity developing in the U.S. dollar right now...
Filed Under: Currencies, forex, u.s. dollar, euro, usd, Bernanke
Category: Currencies

Opportunity at THREE Degrees of Trend?
Or, why the U.S. dollar is like a movie monster

by Robert Folsom
8/25/2009 3:30:00 PM
Movie comparisons aside, the financial press really has tried to hold a funeral for the dollar at least three times in the past five years -- late 2004, early 2008, and summer 2009: "Is This the Death of the Dollar?" was the headline in the U.K.'s Telegraph just a few weeks ago...
Filed Under:
Category: Currencies

Forex (Video): Fear in the Markets? Expect a Trend Change
Sentiment extremes can give you important clues about market direction.

by Vadim Pokhlebkin
8/6/2009 2:30:00 PM

Last fall, stocks around the world were falling like a rock, but the U.S. dollar, to most people's surprise, was rallying against the euro -- on fear, said market commentators. Do you remember what happened next? That's right -- the dollar fell hard: Ironically, a sentiment extreme in favor of the dollar marked a huge top. This free classic video explains why...

Filed Under: u.s. dollar, euro, forex, currency
Category: Currencies

EUR/USD (Forex): A New High For 2009
Elliott wave patterns reveal who the dominant trend favors

by Nico Isaac
8/3/2009 4:00:00 PM
On Monday, August 3, the U.S. dollar packed about as much heat as the Abominable Snowman. Ipso facto: the greenback plunged to a new low for 2009 against its European counterpart, the euro. As for what caused the sharp and sudden drop in the dollar's value -- the mainstream experts pointed their collective finger at one piece of data...
Filed Under: Currencies, us dollar, greenback, euro
Category: Currencies

EUR/USD (Forex): A Choppy Mess... How Much Longer?
Elliott wave patterns suggest a coming resolution to the EUR/USD's limbo.

by Vadim Pokhlebkin
7/28/2009 2:15:00 PM

If you've been frustrated lately by the lack of action in the euro-dollar exchange rate (EUR/USD) you're not alone. Since early June the pair has gone nowhere, but that's only the half of it: It has also swung wildly in the 500-pip range between $1.43 and 1.37, as this chart shows...

Filed Under: forex, Currencies, u.s. dollar, euro, eur/usd, dx
Category: Currencies

Forex: Look for Chart Patterns, Not the News
Currency trading does not have to revolve around watching the headlines.

by Vadim Pokhlebkin
7/21/2009 2:30:00 PM

Financial markets develop as a series of patterns. If you're like most investors and believe that markets are random -- or, at best, moved by "good" or "bad" news -- you will often find Elliott-based forecasts in conflict with your "macro" views. 

Filed Under: forex, currency trading, u.s. dollar, euro, eur/usd
Category: Currencies

U.S. Dollar: Be Careful Trading on the News
Getting caught up watching the news to gauge forex markets' direction can be treacherous.

by Vadim Pokhlebkin
7/9/2009 4:45:00 PM

If you try and trade forex based on what you read in the news, more often than not you are simply running with the herd. That's not always a bad thing, because the herd goes with the trend, and we all know that "the trend is your friend." But there is one big problem...

Filed Under: forex, Currencies, u.s. dollar, euro' trend is your friend
Category: Currencies

U.S. Dollar: How to Predict Trends, Not React to Them
There IS a way to predict the trends in forex markets.

by Vadim Pokhlebkin
6/22/2009 11:00:00 PM
What creates trends in all liquid, freely-traded markets? That depends on whom you ask. To a conventional market analyst, the answer is news stories and events -- political, economic, you name it. The Elliott Wave Principle, on the other hand, teaches that trends are shaped by the collective mood of the market participants. This quick example may help you decide who's right.
Filed Under: u.s. dollar, euro, social mood, risk-averse, forex, currency trading
Category: Currencies

U.S. Dollar: Look Out for Sentiment Extremes
Forex traders can get important clues about the trend from watching market sentiment.

by Vadim Pokhlebkin
6/16/2009 2:00:00 PM
When market players' sentiment reaches an optimistic or pessimistic extreme, more often than not you can expect prices to reverse. Ironically, those also are the moments when almost everyone (everyone who is not paying attention to sentiment measures) is convinced that the trend will continue. The latest action in the U.S. dollar is a good example of that...
Filed Under: u.s. dollar, Euro dollar exchange rate, market sentiment, forex
Category: Currencies

U.S. Dollar Recovers: What's Behind the Rally?
If you think it's "fundamentals," keep reading.

by Vadim Pokhlebkin
6/5/2009 5:00:00 PM
The U.S. dollar, beaten badly since late April, took the upper hand on June 5 and broke below a psychologically important price point of $1.40 against its main competitor, the euro. But whatever you read in the financial press regarding the "reasons" for the dollar strength, they all pale in comparison with this one: market sentiment. take a look at this chart to understand why.
Filed Under: u.s. dollar, euro, dollar strength, sentiment, daily sentiment index, forex
Category: Currencies

Watch Bob Prechter's interview on CNBC Wednesday, Nov. 4. Bob discusses the current juncture, Conquer the Crash II and more.
Robert Prechter on CNBC
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EUR/USD (Forex): How to Forecast Market Moves Before They Occur

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The Elliott Wave Principle is a detailed description of how financial markets behave. The description reveals that mass psychology swings from pessimism to optimism and back in a natural sequence, creating specific Elliott wave patterns in price movements. Each pattern has implications regarding the position of the market within its overall progression, past, present and future. The purpose of Elliott Wave International’s market-oriented publications is to outline the progress of markets in terms of the Wave Principle and to educate interested parties in the successful application of the Wave Principle. While a course of conduct regarding investments can be formulated from such application of the Wave Principle, at no time will Elliott Wave International make specific recommendations for any specific person, and at no time may a reader, caller or viewer be justified in inferring that any such advice is intended. Investing carries risk of losses, and trading futures or options is especially risky because these instruments are highly leveraged, and traders can lose more than their initial margin funds. Information provided by Elliott Wave International is expressed in good faith, but it is not guaranteed. The market service that never makes mistakes does not exist. Long-term success trading or investing in the markets demands recognition of the fact that error and uncertainty are part of any effort to assess future probabilities. Please ask your broker or your advisor to explain all risks to you before making any trading and investing decisions.