Elliott wave Analysis: EURUSD and USDCHF In Negative Correlation

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Hello traders, and welcome to our intra-day updates. Let’s start the day with EURUSD.

On EURUSD we are tracking a bigger three-wave recovery in play, which we labeled as wave a)/i), b)/2) and now c) or iii). That being said, at the moment we see price nicely unraveling a five-wave rally within wave c)/iii) with sub-wave v taking price towards the 1.135 resistance region. At the mentioned region, a top can be found and a minimum, three-wave bearish turn may follow. That said, in case of price later continues even higher, above the 1.135 level, then this would favor a bullish continuation in five waves. Now looking at the USDCHF chart, where we see a completely different picture regarding the price action. We know that USDCHF is negatively correlated to the EURUSD, which means, we expect to see more weakness on the pair, towards the 1.000 regions. At the mentioned area, a temporary rally in a minimum of three legs may follow.

EURUSD, 1h

USDCHF, 1h

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About Author

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!