The euro's slow upward grind from the April 15 low of near $1.31 ended with a bang on May 1.
The violent decline that started that day and continued on May 2 very quickly -- as it usually happens -- erased almost all of the gains from the two-week rally.
The move has been widely blamed on "European debt crisis worries." Of course, the U.S. has worries of its own -- like Wednesday's weak U.S. jobs data. Add to that the European Central Bank meeting on interest rates scheduled for Thursday, May 3, and…where is EUR/USD going from here?
You don't need to juggle a dozen "fundamental" factors for the answer. There is a shortcut to knowing the trend, and it's called Elliott wave analysis.
It boils down to chart pattern analysis. In the days leading up to the May 1 EUR/USD peak, EWI's forex trader-focused Currency Specialty Service had been warning subscribers that the Elliott wave pattern of EUR/USD's rally has been corrective.
In other words, the euro had clearly been struggling to climb against the buck. You can see how choppy and overlapping the rally was in this chart. (April 15 low circled in red.)
Currency Specialty Service had been labeling the rise as wave 2 -- and expecting a sharp decline in wave 3.
The near-vertical drop on May 1-2 certainly has the look and feel of a 3rd wave -- the most powerful move in the entire Elliott wave sequence.
Not any more.
We've now "unpackaged" the Service and made it available to -- and affordable for -- all forex traders, big and small.
You get 24-hour-a-day analysis and actionable forecasts for 12 most-traded forex pairs.