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USD has seen a sharp decline during Asian session as stocks turned lower in over-night session, but technically we see these moves as part of a bigger correction. On USD Index, we are still tracking a fourth wave that is in wave C of Y, near 100.00 psychological support from where we expect a bounce this week. We must wait on a push towards the upper side of a range before we will be able to confirm a reversal.

USD Index, 4H

If a turning point on USD Index is around the corner, then EURUSD top should also be near. From an Elliott Wave stand point we see the pair in very late stages of an ending diagonal, so be aware of a fall. A move back below 1.0695 and then towards the lower trend trendline would be a nice indication of a reversal in progress.


Regarding stocks, we could also see a turn to the upside, especially on DAX which has three legs down to 61.8% Fib. support and open gap around 11620. These gaps will normally get filled in less than 24 hours so leg up from here would not surprise us while 11422 is in place.

Dax, 1H