ID has produced yet another masterpiece. Clearly laid out alternatives and excellent study material for a student. Much obliged.
Shocked to see ID's "despised" alternative coincide with my preferred call. I thought we was friends! :) :)
Presented is EWI's latest EurUsd take -- its on their website and is a free article; don't believe I'm violating any copyright laws, but if so, I'll straighten it out with them, if contacted.
Here's the article in its entirety:
What Moved EURUSD Today: Facts or Speculation?
2/28/2006 3:00:24 PM
Today (Tuesday, Feb. 28) was an especially interesting day to watch forex headlines. In the very early morning hours U.S. time, one major online news source ran a story saying that the dollar was “headed for its first monthly gain since November against the euro on speculation the Federal Reserve will keep raising interest rates.”
Oh, that proverbial “speculation” about the soon-to-be-here higher interest rates. Listen to that reasoning, and buying the U.S. dollar every day is a great idea. But oops – how ironic – just as that story was hitting the newswires, around 2:30 AM this morning the dollar started to fall, sending the EURUSD almost 100 pips higher by noon.
Seeing such “unexpected market action,” the headlines changed the tune later in the morning, blaming the EURUSD rally on two negative economic reports released at 10 AM: drops in consumer confidence and Chicago area manufacturing.
Of course, if you check the chronology, you’ll see that the USD started losing to the EUR almost eight hours before the Chicago PMI and consumer confidence numbers came out. In fact, by 10 AM this morning, the EURUSD rally was already half-way finished.
Still, forex reporters did get one fact straight today – the one about the currency markets being moved by speculation about facts, not necessarily by facts themselves. Speculation is all about hunches, feelings and emotions – in a word, about psychology. And few market analysis methods are as good at anticipating shifts in market psychology as Elliott wave.
To wit, here’s the forecast we published Monday night in anticipation of today’s EURUSD rally:
Update For: TuesdayPosted On: Mon, 27 Feb 2006 21:19:00 GMTEURUSD [Last Price]: 1.1849Confidence Level: Medium-High …the Minor wave A bottom is in place and that an irregular flat Minor wave B corrective rally is in its early stages.
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