Corrections on AUD/USD and S&P Near Completion

Today should be a quite interesting day with traders focusing on the German chancellor Angela Merkel and French president Nicolas Sarkozy meeting in Paris; who will attempt to ease market concerns about Eurozone debt troubles.

Why we also think that trading could be interesting is a technical outlook of the S&P Futures count, where a corrective recovery is running out of time. We should see a resolution very soon, which we believe it will be on the downside. We will keep an eye on a possible impulsive reversal from the top, which should send the US dollar higher after-that. In such case commodity currencies, such as Aud, Cad and NZD should weaken against the buck.

Guest post by Gregor Horvat

Looking at the euro, the overall price action is still very tricky there, but we may see some weakness coming, after German GDP for the first quarter was weaker than expected; 0.1% vs. 05%.

S&P Futures and Aud/usd technical outlook:

Recovery from the lows cannot be counted in five waves, so move is considered as a corrective, part of incomplete downtrend.

Aud/Usd has a very tight correlation with S&P Futures, which in fact also shows signs of a corrective recovery from its low. An impulsive reaction towards or below 1.03 will suggests that correction is done and that market is ready to move much lower.

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Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At Ew-forecast he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

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