{"id":100441,"date":"2017-01-06T13:19:48","date_gmt":"2017-01-06T18:19:48","guid":{"rendered":"http:\/\/countingpips.com\/?p=100441"},"modified":"2017-01-06T13:19:48","modified_gmt":"2017-01-06T18:19:48","slug":"sell-those-euros-sellem","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/01\/sell-those-euros-sellem\/","title":{"rendered":"“Sell those euros. Sell’em.”"},"content":{"rendered":"
January 6, 2017<\/div>
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How do you know a real FX opportunity from a fake one? <\/span><\/h3>\n

By Elliott Wave International<\/span><\/h3>\n

Late last Thursday night (Dec. 29), I got an insistent email from a colleague.<\/p>\n

Jim Martens, long-time editor of our forex-focused Currency Pro Service<\/em> sent me this message with only a subject line:<\/p>\n

——– Original message ——–
\nFrom: Jim Martens
\nDate: 12\/29\/16 9:16 PM (GMT-05:00)
\nTo: Vadim Pokhlebkin
\nSubject: Sell those euros. Sell’em<\/strong><\/p>\n

It was around 9:30 PM when I read Jim’s email, glanced at a EURUSD chart and saw that it had spiked about 300 pips higher in after-hours trading:<\/p>\n

\"\"<\/p>\n

At the time, news stories included some head-scratching. As our next-day Short Term Update<\/em> put it,<\/p>\n

“The [Euro] surged to 1.0654 in overnight trading. Several financial stories were at a loss for the sharp rise. “No ‘particular’ news seems to be driving the euro’s jump,” says the head of forex sales at an Asian bank. Bloomberg called the jump a “Mystery Move.”<\/p>

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Even if the reasons behind it weren’t clear, without a doubt many forex traders saw the 300-pip jump as the start of a bigger rally. But to our Currency Pro Service<\/em> team it was clear it wasn’t the start of anything.<\/p>\n

Here’s the same chart with Elliott wave labels shown:<\/p>\n

\"\"<\/p>\n

“Sell those euros,” as the subject line said. You can see why: We saw the rally as the last gasp of a wave 2 correction.<\/p>\n

In fact, for days leading towards that spike EURUSD’s wave patterns called for the decline to resume:<\/p>\n

\"\"<\/p>\n

When last Thursday’s “mystery” rally came up to within pips of a .618 Fibonacci resistance area, it warned us that the bottom was ready to fall out.<\/p>\n

Which it did. On Tuesday (Jan. 3), the U.S. dollar index hit a fresh 14-year high against the euro and other competitor currencies. This Currency Pro<\/em> Service chart shows you the extent of EURUSD’s decline:<\/p>\n

\"\"<\/p>\n

In a Tuesday morning intraday update, Jim Martens wrote:<\/p>\n

EURUSD<\/strong>
\n[Posted On:]<\/strong> January 03, 2017 09:38 AM<\/p>\n

(Last Price 1.0393): Good morning and welcome to our intraday coverage of the first New York session of 2017. We ended 2016 suggesting the euro might experience a rough start to the new year. It’s down 1.10% since Friday.<\/p>\n

Also on Tuesday, a Reuters headline said: “Dollar hits 14-year highs after strong U.S. manufacturing data.” If only the news could really explain everything.<\/p>\n

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Trading Forex: How the Elliott Wave Principle Can Boost Your Forex Success<\/a><\/h3>\n

Learn how to put the power of the Wave Principle to work in your forex trading with this free, 14-page eBook. EWI Senior Currency Strategist Jim Martens shares actionable trading lessons and tips to help you find the best opportunities in the FX markets you trade.<\/p>\n

Download your free eBook now<\/strong><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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This article was syndicated by Elliott Wave International and was originally published under the headline “Sell those euros. Sell’em.”<\/strong><\/a>. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

How do you know a real FX opportunity from a fake one? By Elliott Wave International Late last Thursday night (Dec. 29), I got an insistent email from a colleague. Jim Martens, long-time editor of our forex-focused Currency Pro Service sent me this message with only a subject line: ——– Original message ——– From: Jim […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-100441","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/100441","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=100441"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/100441\/revisions"}],"predecessor-version":[{"id":100442,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/100441\/revisions\/100442"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=100441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=100441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=100441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}