As 2017 began, all fundamental signs pointed DOWN for China’s ever-depreciating yuan. Three weeks into the year, and the yuan is on a very different course; namely, up! Look no further for an explanation.
Whether you look at other markets, politics or something else to explain a market move, you’re explaining a move that’s already happened. And for a trader, the real question is, "What will the market do tomorrow?" Let's look at how Elliott wave analysis handles it.
Chris Carolan, who edits our Asian-Pacific Short Term Update, explains how the Elliott Wave Principle helped him anticipate the recent move in the Chinese yuan.
Two days before the New Year’s Eve, I got an insistent email from a colleague. Jim Martens, our Senior Currency Strategist, sent me a message with only a subject line: “Sell those euros. Sell'em.”
Elliott waves and sentiment extremes often anticipate financial market moves that baffle mainstream market observers. For example, a recent surge higher in the euro was called a "mystery move." Here's what we called it.
For nearly two years, the euro has been mired in a sideways holding pattern... until now. In late November, the currency woke DOWN from its sideways slumber and plunged to a 14-year low against the U.S. dollar. The reason for the euro's crash might surprise you.
2016 was the year of political surprises. First was the shocking Brexit vote in June. Then, the surprise Donald Trump victory in November. Both moments saw a lot of volatility in the financial markets. Yet, while it’s tempting to say “of course” and blame volatility on the news, the reality is not so black-and-white. Case in point: the British pound.
Elliott wave analysis has only three rules. Beyond those, there are many guidelines for wave formation. But a guideline is just that -- a guideline, while a rule is... well, something you cannot violate. Or can you?