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USD Index Weakness Giving Bullish Support To EURUSD –

The USD index fell to a new low as shown on the 4h chart below, which means that USD bulls are not here yet, but we see the market in the fifth wave. However, a fifth wave is also an impulsive leg so it must be made by five smaller waves before we can expect any significant changes in the trend.

USD Index 4h Elliott Wave Analysis

USD Index 4h May 14 21015 Elliott Wave Analysis dollar index

Well, looking at EURUSD, which has an inverse relation to the USD index, we see room for a higher EUR as the leg from 1.1125 is not in five waves yet. That said, the pair can extend even above 1.1500 in session ahead as long as market trades above 1.1275, which is invalidation level as coming fourth wave must not trade into wave 1.

EURUSD 1h Elliott Wave Analysis

EURUSD Intraday May 14 21015 Elliott Wave Analysis euro dollar

Gregor Horvat

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!