From the 4-hour chart, we can see that the price has been making an Elliott wave since Sep 20th. Before the wave, the price had already been falling for more than two weeks. The total downward trend adding up would be almost a month. This trend was a long-lasting and solid one. The slope was comparatively mild and consistent, so it was hard to break. However, it still met support on Oct 7th, which was also the last wave of the Elliott wave.
As can be seen, the Bollinger Bands shrunk soon, which is a breakout signal. However, it does not show any direction signal. But we still see MACD make a bullish cross. The bullish cross was made below the zero level, which means the price still has room to go up. Although the Stochastics touched the overbought line, small waves could bring it down. Also, the overbought situation could last. We can see that the Standard deviation still has room to go up, which is going up now. Now, we have some bullish signals. Let’s expect the Elliott correct wave to come.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.