Fx-Technique » Elliot Wave Technique http://www.fx-technique.com Fx Indicator, Fx Articles, Fx Trading Strategy Sat, 14 May 2011 15:15:21 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 EURAUD Ready to Resume Downtrend? http://www.fx-technique.com/euraud-ready-to-resume-downtrend/ http://www.fx-technique.com/euraud-ready-to-resume-downtrend/#comments Fri, 08 Apr 2011 17:26:20 +0000 cymoo http://www.fx-technique.com/?p=324

By Jeremy Wagner,

25 January 2011 20:46 GMT
The EURAUD may be resuming its strong downtrend. There are 5 clear waves to the downside and 3 overlapping waves moving up. Those familiar with Elliott Wave Theory understand that the 3 wave up move is likely to be a partial upward retracement. The 3 wave counter trend moves are excellent waves to consider a Fibonacci retracement strategy. Most retracements to a 5 wave move are 61.8 to 78.6% and this one fits the mold. We look for the trend to re-emerge to the downside on this 60 minute chart.

An aggressive stop would be placed just above the swing high near 1.3810. A more conservative stop would be just above the January 23 high near 1.3835. Look to take profit at least twice the distance to your stop or in the upper 1.3500s to lower 1.3600s.
EURAUD_Ready_to_Resume_Downtrend_body_Picture_1.png, EURAUD Ready to Resume Downtrend?
For more information on Fibonacci retracements, watch a live webinar on Trading with Fibonacci or watch a recording of these live webinars in the DailyFX Plus Trading Course (scroll down to the bottom for the archives).

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25 January 2011 20:46 GMT

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