On October 27, the EU agreed to expand a bailout fund, and the euro surged, pushing the EUR/USD above $1.42 for the first time in weeks.
Question: Is this a start of a real bull trend against the U.S. dollar, or a temporary relief?
You can't really answer that using "fundamental" analysis. Yes, today's news seemed to help the euro -- but how will the forex markets see it tomorrow? What other important events might unfold in the days ahead? There is no way to know; all you can do is sit, wait -- and react.
Not so with Elliott wave analysis. Our reply to whether this euro rally is real or fake depends on the larger Elliott wave pattern in the EUR/USD. A bullish pattern means the euro's in it for long haul. A bearish pattern means the rally is a fake.
Our Currency Specialty Service gives you the answer right now. You have to be a subscriber to see the complete details, but take a look at this chart and forecast posted on the evening of October 26, a day before the euro surged (some labels erased for this article):
Update For: Thursday
Posted On: Wed, 26 Oct 2011 20:45:20 GMT
EURUSD Last Price: 1.3903
[Turning higher?]
To know whether the euro's rally is "for real," you have to know how to label the price action since that wave 5 top. Currency Specialty Service shows you the proper Elliott wave labeling right now -- short- and long-term >>
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