FOMC (Federal Open Market Committee) will declare outcome of this month’s meeting on Wednesday and the market is expecting a rate hike by the FED and consequently, dollar would be expected to get strong. We, at Elliottwave-Forecast.com, we base our trades on the technicals and not on the fundamentals or FOMC. The market itself, like everything in nature has a natural way to move in which the market will either follow a corrective or an impulsive sequence. The Elliott Wave is the only technique which uses patterns and sequences in order to forecast the market. EWF uses Elliott Wave as a language to communicate the natural way the market is moving. In the following video, we are going to use EURAUD and EURCAD to anticipate market moves entering this week’s FED rate decision. We are going to explain how EURAUD sequence from 9.14.2016 is incomplete which means while bounces hold below 12.8.2016 and more importantly below 11.9.2016 peak, pair should see more downside. We are also going to show that sequence in EURCAD from 11.9.2016 is incomplete and is calling for extension lower against 12.8.2016 and then against 11.9.2016 peaks. Putting these two instruments together, we are able to see that they should extend lower which means that based on the current market dynamic as explained in the video, we can expect US Dollar to trade higher after FOMC rate decision for at least 1 more swing. Also, in the video, we show the daily sequence of EURAUD which has minimum number of swings within the cycle and how this correlates with US Dollar.
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