Elliott Wave Analysis on EURUSD and German DAX August 4



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

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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