EURUSD. Short proposal

5 июл. 2016 г.

To be honest, it all started when I was completely unable to describe the EURUSD pair behaviour using Elliott Wave technics: it is surely possible but still escapes my knowledge.

I noticed price increases and descreases were highly propotional and patterns were quite similar. I therefore tried to compare the price range and data range of the first pattern to the price and data range of the second. The first price increase was of 0.12501 and second of 0.11093. I divided the lower figure into a higher and that gave me a percentage difference which I took as a price difference coefficent. I did exactly the same with the data range and it gave me Data difference coefficent.

Then I measured the first decrease, which was of -0.12074 and applied the coefficent to the current decrease which have started at 3rd of May 2016 from a value of 1.16163. It gave a value of 1.05421 to be reached by the 3rd of August 2016.

The most important thing which gives a nice support to my calculations is that a Trend line, traced from a local minimum of 1.04624, reached on 13th of March 2015 and another local minimum of 1,05168, reached on 3rd of December 2015, goes almost exactly through the target value and on a target date.

Finally, if we assume that current movement is a triple zig-zag, which started at 1.16163, third "zag" movement goes to 1.06790 but the 127.20% Fibo extension hits exactly the price we target.

Having this, I will try to play the model until August. The important thing would be finding a good entry point as I´m pretty unsure on how high the pair may climb before going down below 1.10