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Will This Week's EU Summit Save EUR? Here's How to Know the Trend in Advance
Leave the guesswork about the new European summit to others
By Vadim Pokhlebkin
Mon, 25 Jun 2012 17:15:00 ET
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June 25, Reuters -- The euro fell broadly on investor skepticism the June 28-29 meeting of European Union leaders would produce substantive measures to tackle the debt crisis...

Indeed, EUR/USD, the euro-dollar exchange rate and the world's most actively traded forex pair, today stands well below the June 17 high of $1.2743. If the euro rises tomorrow, you may read in the news that the market has turned optimistic about the outcome of the EU meeting...
 
...but there is a much more objective way to identify the EUR/USD trend -- right now.
 
Many forex traders disregard chart pattern analysis, but if you're serious about trading, you cannot afford to. Charts are not just a bunch of squiggly lines. Every "peak" and "valley" shows you a reflection of traders' bias, bullish or bearish. If you know what that bias is, you can then make a forecast for where the prices should go next.
 
Elliott wave analysis helps you do just that. There are 13 known Elliott wave chart patterns, each with its own set of rules and guidelines. Elliott wave forecasting is not fool-proof, but you may have already seen some of the recent examples (here, or here) of just how helpful it can be. What are Elliott wave patterns saying about EUR/USD today?
 
One of the latest intraday posts inside our forex trader-focused Currency Specialty Service says this (some Elliott wave chart labels have been removed for this article):
 
EURUSD (Intraday)
June 25 2012 7:50AM ET: Both the thrust from a triangle and a momentum divergence warn a 5th wave decline is mature.
 
 
Elliott wave analysis states that whenever you see a completed 5-wave pattern on a chart, a trend reversal should come next. 

How far, how fast? See this chart fully labeled with Elliott wave symbols, plus get the 3 likely EUR/USD price targets, inside our forex trader-focused Currency Specialty Service now. (And leave the guesswork about the new European summit to others.)


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Tags: Elliott Wave trading, eu, euro, European debt crisis, eurozone, forex, forex trading, Greek debt, online trading, technical analysis, technical indicators, trade targets, U.S. dollar
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