Elliott Wave Analysis on EURUSD and German DAX



Good morning traders. The main event today is the  BOE rate decision where markets expect rate cuts and additional QE from Mark Carney in an attempt to balance the Brexit vote and future potential problems for the UK economy. Furthermore, we have the jobless claims in the US later today.

The EURUSD is falling nicely form our ideal target zone at 1.1250 and the market is forming a nice impulsive wave to the downside. What is important is that the nature of the fall looks impulsive so our outlook for now is on the right track. We now expect lower levels to follow and would like to see the lower corrective channel line at 1.970-80 be broken to confirm a further decline.



German DAX

DAX is pushing to the upside after reaching our target for the wave lows yesterday. We regard this move as corrective, expecting further weakness into wave c of 4, but only after we see the blue wave b develop. Blue wave b may now ideally reach the 50.0 Fibonacci ratio, from where a new drop into wave c may occur.

German DAX, 1H

dax 1 (1)

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About Author

Gregor Horvat is  based in Slovenia (Central Europe) and has been in Forex market since 2003. He is technical analyst and individual trader who also provide a lot of articles and trade plans based on the Fibonacci and Elliot Wave principle. He was working for Capital Forex Group and TheLFB.com. His feature articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, oil, gold, and the U.S. stock market. Gregor Horvat is also founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). EWP provides a method for identifying price points at which a market is most likely to turn. Knowing the probable swing and reversal points provides confirmation of where investors could enter and exit positions for the highest probability of success. Gregor Horvat Chief  Technical Strategist Website:  For more analysis visit our website and Try our services absolutely free for 7-days! http://www.ew-forecast.com/service//

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