Correlations, "Fundamentals" and Elliott Wave

Thank you Joseph,
My favorite show Myth busting got us closer to the point why Elliott Wave principle could be considered a very reliable tool if used properly.
At different times and circumstances people react differently to "fundamentals", depending on their "mood" (illustration to follow). Because of that, you will find that correlations tend to diverge/converge from period to period.

I have mentioned in few occasions that I tend not using Wave Principle mechanically, meaning that I don't observe just a geometry, but I try to comprehend whats behind.
I am aware that for many it is almost stupid thing to even think off and even more to try doing it. Even I would agree, but it is not quite impossible, or at least it is not impossible to get closer to the real picture behind scene.
It requires collecting all the pieces of the puzzle, and trying to fit them all to get the best picture on whats behind the scene.
So beside the EW outlook, Fibonacci lines, S/R and RSI, it requires following news and economic calendar, considering different correlations, comparing different scenarios, and as I said, trying to figure it out how they all fit into the puzzle.
My best analysis came when I was really "into the zone". And I can tell you that at times, I was spending on average 30 minutes on each currency pairs.

• I start my weekly analysis with checking longer term view I have on a weekly chart, to see if the action so far fits into the preferred longer term view(s)
• Then I check the Primary and Intermediate outlook on a Daily
• continue analyzing the unfinished intermediate pattern from the Daily chart on the Hourly chart
• down to unfinished Minor pattern (and to Minute patterns if I look for intraday)
• At all this stages I also look/check on important fib lines, S/R and RSI to get more confluence with my EW view

this is the part of my standard Technical Analysis.

But, to get really close to whats behind the scene, you must follow news and economic indicators, and try to comprehend how they fit into the charts and your view.
And in it is not important what you think about the fundamentals, but you must try to figure out, what will Market take into consideration and how it will consider that information.
"Fundamentals" have a very limited influence on the price action, so it is wise to avoid trading the news (announcements of ec. ind.), and you will always get a good indication for your EW view when the dust comes down after the news.
In a moments of inspiration in my first thread on MTec, I have tried to explain what in my opinion are the real fundamentals behind the price action. I could summarize that and post here for those that did not had an opportunity to read it in some of my nest updates. Not a very entertaining reading as Joseph's myth busting episodes :)

USDX
check previous post, this is follow up:
Down to 90.15<>90 intraday
Looks like we have at least a minute top, and we can expect DX to go to 88.74 and most probably below that and below the low of 87.83 down to 86.30/20
Failure to break below 89.70<>89.60 could be a good indication of a possible continuation up above 92.63 top.

in pairs
first my favorite for some time now
JPY
previous post still valid
stayed below 119.37 and now it looks like we are in a downtrend to mentioned targets to min 115.3 but more probably 113<>107 (111.6<>110.7)
Intraday, below 117.85 is good for min 117.20/10

EUR
from previous update:
"Intraday, we could see this drop finishing little lower, just below 1.18<>1.17 in EUR, after it corrects to 1.1940/46. "
passed 1.1940/46 so the new update on EURUSD is:
Intraday down to 1.1915 but not lower than 1.1905 to continue up to 1.2045/55
Above that could mean min. 1.2200/40
I believe that we are in a continuation down to min 1.15/14 and I expect that this ongoing correctional action will finish at 1.2045/55 or below, but not higher than 1.2321 high. After that I expect a drop to 1.15/14 price levels.

from previous update:
"GBP could stay above recent low in GBP and correct to around 1.74<>1.76 (7433 and 7545) before it continues down to mentioned prices."
confirmed for now and still valid.

from previous update:
"CAD - Not very clear, but up to 1.167 and possibly up to 1.2 longer term down to below 1.00"
failed, so it could mean continuation down. If so Intraday should be limited below 1.1525 to continue down to below 1.12

from previous update:
"NZD possible small correction to .671<>.675 then down to .664<>.66"
fell directly to target zone after the post, low at .6621
Most probable next move up to .6790 to .685

Both CrudeOil and Gold still in correctional move down, but at the moment thay are in a smaller sub wave up of that correction and they both have some more on the upside before they continue down.

ID