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Elliott Wave Analysis on German DAX and USD Index

German DAX

US stocks and European stocks sold-off on Friday, but German DAX index is already recovering back to a 10837 high. Notice that the price bounces exactly from around 10522-10453 support area that we highlighted as very important reversal region. A move to the upside is now very sharp so it’s probably an impulse that will spike above 10837 and maybe to 10900, before the price turns lower for a new minor three wave retracement.

German DAX, 30 Min

dax 30

USD Index

We are bullish on dollar as DAX trades higher, so be aware of higher prices on the Dollar index, especially as the latest pullback was made in three waves. That said, a break out of the channel resistance line and push above 99.13 should be tracked very closely as this will indicate a completed wave 4 and wave 5 in progress to 99.50.

USD Index, 1H

usd inde 1

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!