Welcome to 2020, a year that brings new opportunities to continue trading and earning thousands of PIPS. How do you see your trading in twelve months? A key question we all need to ask at the beginning of each year. To reach your goals, make a list of all your trading purposes and then a plan to achieve them. One goal on your list will undoubtedly be to incorporate Elliott’s waves into your trading. In this report, we will look at the EUR/USD from the Elliott Wave point of view.

The Big Picture

Doing the top-down analysis from the monthly or weekly chart is necessary to understand the primary price cycle. In this case, the weekly seasonal count shows that the price is performing the fourth wave, “iv” denoted in black. Its target is at 1.1320/50 when the fourth wave ends, the fifth wave will enter the ring, and we expect a bearish cycle pointing to the 1.0850/00 zone. At that time, the strategy will be oriented to validate the end of the blue “i” wave to buy and aim for 1.1900. This process can take all of 2020, and thanks to this detailed map, we only need to validate each turning point through technical analysis.

Weekly Chart

elliott wave

In the four-hour time frame

We found a bullish cycle during the last days of 2019, and the Euro accelerated, reaching the high of 1.1239, this cycle is the green “A” wave in our analysis. The bearish reversal for the green “B” wave is active. Its target is 1100. The internal waves of wave “B” correspond to the double zigzag, where the first appears as the blue “w” wave, and the second (blue “y” wave) is active. Once the corrective “B” wave is over, we will buy the EURO aiming at 1.1300/50.

Four-hour chart

Strategy to trigger the long trade

Step 1: Before thinking long, you need to have a trade setup. For this, we need firstly a bearish cycle that I cross down the 1.1125 support (green line). Along with the development of the three waves in magenta “abc”.

Step 2: Once the price finishes the green “B” wave, below the 1.1125 support will start to rise, by breaking the old 1.1125 support now known as resistance, we will look for a BUY STOP in the 1.1130 area. Target 1.1300.

Step 3: Time to manage the trade. Taking partial profits at +60 pips, then at the 1.1240 resistance, and leaving a fraction open to impact the 1.1300 and adjusting the stop loss along the way.

We hope and wish 2020 will be a successful year in all your trades.

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