Elliott Wave Analysis: DAX and EURUSD December 9 2016

Good morning everyone!
US stocks remains bullish with DAX now trading around the 1200 mark, but the slow price move on the 30min chart suggests that this is just another correction within the uptrend. As always, it’s good to stay with the trend, so we will continue to look higher, this time up to around 11300, where the index may find stronger resistance for a deeper corrective pullback down in wave 4 of a higher degree.

German DAX, 30Min

At the same time, we finally see EURUSD turning south, but the sharp decline from 1.0870 makes it difficult to join the trend, so traders need to wait on a pullback. Ideally, we are going to see an a-b-c bounce now back to 1.0700 resistance, which would be an ideal zone for a new sell-off. Corrections need time to unfold, so ideally a new strong leg down will show up next week.

EURUSD, 1h

On USDCHF we see very similar situation but within an uptrend. We are waiting on wave two pullback which could be attractive for a long entry from around 1.0100-1.0140, while the pair is above 1.0021 invalidation level.

USDCHF, 1h

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!

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