Elliott Wave Analysis on AUDUSD and German DAX

AUDUSD

On the intraday chart of AUDUSD, we are looking for a completed wave v) in the corrective pullback to the upside, that can reach our fibo. ratio levels around 161.8 before turning to the downside. Lately this pair is tracing out some complicated structures. On the larger time frame we are still looking for lower levels after this corrective pullback is over.

That said all pairs are showing one more possible run in 2016 for USD. If we don’t see an impulsive fall on AUDUSD soon, then that would mean that a corrective upward action is not completed and that we have a bit more upward price action to follow.

AUDUSD, 1H

German DAX

As well as AUDUSD, DAX is also trading in a correction on a higher time frame. We are tracking a complex fall from highs in the ending diagonal form in the black wave C. Currently we should be in the fifth wave of C, the last leg of this corrective pullback and according to our count this should be over in the following days or weeks. This means we can expect a recovery of this index soon but we have to monitor the structure of the potential rise and see if the structure will confirm a reversal.

Keep in mind that ending diagonals can indicate sharp reversals after its completion and in our case a new bullish cycle could start in red wave V), if our view is correct.

German DAX, 4H

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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