USD Taking Corrective Pause, Looking At EURUSD & USDJPY

Markets are slow, not moving much today. However, we suspect they will start rumbling later today when we have CAD and US CPI figures and also US Building Permits. Generally speaking, we see the USD in a stronger position than other currencies, so any moves against the buck are likely only temporary corrections.

On EURUSD below we are looking at short-term low near 1.0850 established yesterday where the pair might have completed a five wave decline from the July 10 highs. As such, the current rally is likely going to be structured in three waves, ideally a zigzag that can lift the pair back to the 1.1000-1.1080 area before the downtrend will continue next week.

EURUSD 1h Elliott Wave Analysis

USDJPY is bullish, but still trying to find a resistance around the 124.00 area where a fifth wave may complete an impulsive wave (a), so traders must be aware of a deeper three wave set-back down in (b). A divergence on the RSI also suggests that upside is limited.

USDJPY 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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