Elliott Wave Analysis: S&P500 and EURUSD

S&P500

We expect the dollar index to hit new lows of the year as EURUSD breaks above 1.0800, while stocks sold-off as Trump’s health-care bill fails. E-mini S&P500 has extended its weakness from last week down to 2320 area which was our projected zone for a fifth wave of decline, highlighted last week. The question is, what is next. Well, if you are familiar with the Elliott Wave principle, then you know that the market can be ready for a bounce this week if we consider that after every five wave trend there will be a change in three legs minimum, no matter what is the structure on a higher time-frame charts. So, from a technical perspective, and also from a psychological point of view, when others are turning aggressively bearish on stocks, we suspect that a three wave of retracement may show up on stocks, but it may be just another temporary recovery. Divergence on the RSI also indicates a potential turn. We see the first support zone here near 2320 while the next one stands near 2310.

S&P500, 1H

EURUSD

EURUSD is on the rise which we assumed would happen after only a three wave decline from 1.0824 that we labeled as a corrective move. Notice that since then, the market turned sharply higher, clearly in impulsive fashion that already shows five sub waves up from 1.0759, thus a reversal point may not be far away. Technically speaking we see a resistance at 1.0880-1.0900 region.

EURUSD, 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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