Elliott Wave: EURUSD, German DAX May 2016



Good morning traders. Today from the news side we have CPI figures in Canada. No major news on other markets. Stocks are choppy and in some form of consolidation in the last few trading days with USD gaining over hawkish FED tone.

EURUSD is still on the downside path trading in the possible final moments of black wave 3, which may rebound around the 1.1161 zone, where Fibonacci ratio of 138.2 could react as a support and a turning point. After wave 3 is finished, resistance for wave 4 can come in around 1.1240 from where we expect the continuation of the current bearish trend towards 1.1100 price levels.



German DAX

As of DAX, the price is still trading in the triangle consolidation in black wave 4, which may be in its final stages. A possible resistance region for the last leg E wave up is around 9.960-70 zone with invalidation levels at 10.084, where the high of wave C is located. If the price breaks beneath wave D lows around 9.755, then this would be the first sign of more weakness ahead.

German DAX, 4H


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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 www.ew-forecast.com, 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 www.ew-forecast.com 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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