EUR/USD potential fall and USD rise on US GDP

EUR/USD potential fall and USD rise on US GDP –

Today is the important data release for the USD and other correlated markets. At 12:30GMT we will get the US GDP figure with current expectations at -0.8%. This is definitely not a good number for the buck, but anything around -0.6% could mean a very strong reaction on the charts in the direction of the USD.

Technically speaking we would not be surprised if the USD continues higher as we see several pairs in corrective formations. On the USD index we also see a nice pullback from around 97.90, which appears to be a complex, double zigzag that is now seeking for a support with wave (y). Traders may want to keep an eye on 96.80 and 96.50 supports for a potential bounce higher.

USD INDEX 30min Elliott Wave Analysis

If USD Index goes higher, then EURUSD will fall, so our view for the euro is bearish. We are looking at an A-B-C recovery that can stop near the 1.1000 handle. In that area we also see a 50% retracement that can react as a resistance. A little higher we should keep an eye on 61.8%. The invalidation level is at 1.1210. As long as this is not broken we expect more euro weakness.

EURUSD 1h Elliott Wave Analysis

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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