Forex Trading | Elliott Wave Structures | Q2 2019

Forex Trading | Elliott Wave Structures | Q2 2019
Markets: FX Majors

• Dollar Index (DXY)
• EUR/USD
• GBP/USD
• USD/JPY

Forex Majors have been trading with extensive volatility during the end of 2018 and then expanding into the 1st quarter of 2019.
The USD has been unstoppable, smashing everything in path, thus crushing the EUR and gaining a lot of ground against the YEN.
GBP however managed to hold its ground, despite Brexit sentiment and overall “theatrical” swings endured.

From an Elliott Wave standpoint, the Forex sector seems to be preparing to finalize larger degree patterns, thus leaving room for new cycles to start unfolding.

The patterns explained in the “Crash Sequence & Brexit Volatility vs Wave Patterns” article have been unfolding rather well, considering the fact that a tsunami of volatility hit these markets.

Even so, it might just be the right time to follow-up and expand the trading senses with a fresh outlook.

I believe that the USD could be tired and is showing considerable signs of some profit taking most probably around the corner.
This would mean that the EUR and the GBP would recover some of the losses, thus paving the way for new impulses in the Forex Market.

Short-term wise the USD should be going bearish and depending on how serious this swing would be, it could extend and become a proper bearish impulse.

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DXY – Elliott Wave Outlook

• Patterns:
  Impulse in Primary A (turquoise)
  Barrier (Ascending) Triangle in Primary B (turquoise)
  Ending Diagonal in Primary C (turquoise)

• Next expected swing:Bearish leg in Intermediate (2) (blue)

• Structure change:A breach of the lower trend-line from the Ending Diagonal could result in serious damage for the USD.

EUR/USD – Elliott Wave Outlook

• Patterns:
  ABC Swing in in Primary A (red)
  Complex Running Flat in Primary B (red)
  Ending Diagonal in Primary C (red)

• Next expected swing:Bullish leg in Intermediate (4) (blue)

• Structure change:A beak-out of the upper trend-line from the Ending Diagonal could result in a bullish impulse for the EUR/USD

EUR/USD – Daily Interactive Chart

GBP/USD – Elliott Wave Outlook

• Patterns:
  Double Three Structure in in Primary W (red)
  Complex Triple Three in Primary X (red)

• Next expected swing:Bullish Impulse in Minor C (green)

• Structure change:A breach of the lower trend-line from the Ascending Channel could result in more weakness ahead

GBP/USD – Daily Interactive Chart

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USD/JPY – Daily Chart (picture)

USD/JPY – Elliott Wave Outlook

• Patterns:
  Leading Diagonal in Primary (A) (turquoise)
  Sharp ABC Correction in Primary (B) (turquoise)
  Leading Diagonal in Intermediate (1) (blue)
  Running Flat in Intermediate (2) (blue)

• Next expected swing:Bearish leg in Minor Y (purple)

• Structure change:A breach of the Channel could change the structure into an Expanding Flat

USD/JPY – Daily Interactive Chart