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July 31 2019

Hello traders!
Today we will talk about stocks, specifically Nikkei and why USDJPY can see higher prices.

Well, as you may already know, in EW theory after a three-wave corrective decline, the trend should remain to the upside. This is what we see in the stock market all the time. However, Nikkei got our attention, because we can see a nice five-wave rally after that three-wave a-b-c correction, which means that Nikkei remains in uptrend, but after another three-wave correction in the lower degree, where ideal support would be here around 21450 - 21250 region, just keep in mind that bullish confirmed can be only if it manages to turn back above 21770 region!

In the right picture you can see tight positive correlation between NIKKEI and USDJPY, which means that if NIKKEI points higher, then even USDJPY can see higher prices, so do not be surprised if USDJPY remains bullish towards 109 area or higher.

So, seems like risk-on sentiment may continue and when we are in risk-on, we usually see bullish stocks, which are followed by recovery on XXX/JPY crosses. That being said, be aware of a bullish continuation on stocks, while XXX/JPY cross pairs may see a bigger recovery.

Be humble, trade smart and wait for the right sentiment to enter the market,

EW-forecast team

Elliott Wave & Intermarket Analysis For NIKKEI And USDJPY by ew-forecast on TradingView.com

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July 29 2019

Hello traders,

I hope you are now on the beach somewhere, enjoying a well-deserved vacation with your family while reading this post. So you are like most of us who cannot be without market quotes for more than a day or two. So what’s going on FX these days and what its interesting?

We have seen some very nice bounce on the euro since Thursday after Draghi announced that easing was going to be delivered in September, on several fronts including rates. The best moves were not seen on EURUSD, but rather on some crosses pairs such as EURAUD. This is very volatile pair for the last few weeks and even months as EURUSD and AUDUSD diverge. I have been short EURAUD a few weeks back based on bullish Aussie and gold view (BTW I will make a video of that trade soon). But now it appears that we should be looking at the other side of the EURAUD trend. Why? Because pair accomplished a very nice five waves of decline from 1.6446, confirmed by a five wave rise on an hourly char. It looks like the beginning of a three-wave recovery, like a zigzag which will be a contra-trend move on a daily chart that I would like to short sometime in the future, but for now, attractive can be wave B retracement to catch wave C towards 1.6230 resistance.

I will be watching it very closely and let you know about the developments on twitter @gregahorvatfx

Trade well, GH

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July 16 2019

Good morning fellow traders!

As you may already know, Coffee and Brazilian Real (BRL) are in tight correlation which can be clearly seen in the correlation chart below where we see USDBRL in orange turning lower, while Coffee can be putting in a low at the same time. But the most interesting part is the wave structure, so with the help of the Elliott wave model, we can easily put both markets into the one context. We assume that coffee futures will continue to rise while USDBRL will be declining.

Coffee vs USDBRL, Daily


 

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A week back I promised to our members that I will make 50 push-ups if NZDUSD will see a 50 pip bounce. Guess what, pair moved straight up afterwards and for now it seems it may gain even more strength based on the Elliott Wave Structure.
Enjoy the video,

GH

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Two weeks back we shared our view on bitcoin cash and highlighted bullish pattern that was pointing higher back at the time.

Here is now video update.

GH