EUR/USD (Forex): Like Watching Grass Grow
After every choppy market move comes a price spike

For six weeks now, the euro-dollar exchange rate, known to forex traders as the EUR/USD, has gone nowhere. The dollar has gained big since late November, but while we've seen some big ups and downs lately, they made almost zero net progress: Today, the rate stands near $1.3650, where it was in early February. What's next?

Forex Trading Vs. Stock Trading: What Are The Advantages? Part I
24-hour trading, liquidity and limited number of markets is what draws Elliott Wave International's Jim Martens to currencies.

EUR/USD Breaks Below Major Price Point
Just when everyone thought the U.S. dollar was a goner, it rebounds!

On January 27, the EUR/USD (exchange rate between the euro and U.S. dollar and the most widely trade forex pair) slipped below $1.40 for the first time in six months. In other words, the dollar, considered by most analysts all but doomed a short while ago, now stands at a 6-month high against its main competitor. Ironic? Paradoxical? You bet. Here's more on that from Robert Prechter.

EUR/USD: What Moves You?
It's not the news that creates forex market trends -- it's how traders interpret the news.

What moves currency markets? "The news" is how most forex traders would undoubtedly answer. Economic, political, you name it -- events around the world are almost universally believed to shape trends in currencies. Today's (Jan. 14) new story, for example, is high up on the roster of events that supposedly have a major impact on the euro-dollar exchange rate. But let's take a closer look at it.

EUR/USD: Look at Wave Structure to Know Trend
You don't need to over-complicate Elliott wave analysis to make use of it.

Wave structure is the very basis of Elliott wave analysis. To an Elliottician, every seemingly "random" wiggle on a market chart fits into an Elliott wave pattern. The 13 known patterns are divided into two broad groups: impulsive and corrective. Simple enough, right? Now let's look at the recent action in the EUR/USD, the most widely-traded forex pair, as an example of how you can put this information to practical use in currencies.

U.S. Dollar: From Panic to Embrace
How the love/hate sentiment toward the dollar can help you pinpoint major turns.

U.S. Dollar (Forex): Feelings vs. Reality
Despite the gloomy news, the U.S. dollar has held its own, so far.

Despite the near-panicky news headlines, you can see from this chart that for most of November the EUR/USD has gone sideways! Yes, big swings up and down -- but almost zero net progress, so far. In the words of Elliott Wave International's president Bob Prechter...

VIDEO (Forex): Often, Basic Elliott Is All You Need
"Simple" can be powerful.

Every Friday, Elliott Wave International's Senior Currency Strategist Jim Martens records a weekly video for the subscribers of his intensive Currency Specialty Service. In the one you are about to watch, Jim explains how the same basic pattern that R.N. Elliott discovered back in the 1930s is often all you need to make forecasts -- for the EUR/USD, in this example.

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."

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.

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

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?

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

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.

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

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

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

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...

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

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. 

U.S. Dollar: Are We Seeing Evidence of a Turn?
Enjoy another Market Insight comment by EWI's Senior Currency Strategist

EUR/USD: Sometimes, the Less You Say, the Better
You should worry about the markets LESS when they are unclear and MORE when they are clear.

EUR/USD: Clarity Comes From Having Perspective
Even in tough markets, Elliott wave analysis offers you an edge.

How to Trade Forex around Major News Releases
As the saying goes, you miss 100% of the shots you don't take.

Any experienced forex trader will tell you that trading currencies when a major economic report gets released can be treacherous. Probably the most infamous of all scheduled news releases -- infamous for its treachery, that is -- are the U.S. interest rate announcements by the Federal Reserve Bank. But market action on those days can also mean opportunity for a forex trader who is properly positioned BEFORE the announcement. Here are some thoughts on how to do that...

EUR/USD: Don't Get Distracted by News
What matters to the trend is not the news -- it's how forex traders react to it.

Today (Thu., April 9) gave us a classic example of why you cannot rely on "fundamentals" to predict which way the U.S. dollar and other currencies will go. Here's why...