2 Hurst Cycles Analysis to be considered in 2017

In the article “3 trading cycles every trader should know” you learned the basic movements of the economic cycle and how it influences the financial markets.

In which stage is the economic cycle now?

In this post I will analyse it using the standard Hurst Cycles movement (also known as Battleplan).

You will find the likely reversal prices and the trade timing.

Read it until the end.

EUR/USD & The Economic Cycle

The EuroDollar is clearly at the end of its economic cycle. (200 weeks)

If you count the periods from the last top on May 2014 you will know that the price is now on the third yearly cycles and in the time span where the economic cycle could reverse.
The Battleplan suggests December 2016 as reversal timing.

eurusd economic hurst cycle

Anyway, even if the time suggests to Buy, it’s not advised to try to buy the minimum.

Why?

Because the overall trend is bearish and, as explained in the previous article “How the Hurst Cycles change in a strong trend“, there is a high probability that this bottom will be a Lower Low doing fake breakouts and bull-traps.

A proper strategy could be:
Wait for the 4th bottom on June 2017 and, if it’s a higher lowbuy the Breakout or the Hold of the area 1.11 – 1.15.

In this way you have 3 trade confirmations:

  1. The time: June 2017.
  2. The Bigger Trend: Higher low.
  3. The price: area 1.11 – 1.15.

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USD/JPY Hurst Cycles Analysis

As for the DollarYen there are two counting possibilities:

  1. From the bottom on September 2012.
  2. From the Top on May 2016.

Both of the Battleplans confirm the timing of the minimum on July 2016.

The combination of the reversal time span more the supports 100.00 -102.00 and the descending trendline create the strong reaction you are seeing now.

usdjpyweekly222

What is the best strategy in this situation?

Both of the Hurst Cycles Analysis don't show any reversal signal until March-April 2017.

The plan will be to analyse any smaller cycles such as the 6months and find Long Entries to Join the Bullish Movement.

6-Months Forecast

The analysis for the 6 Months Hurst Cycle is reserved for the Subscribers Only.

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