Elliott Wave Analysis: USD Index, EURUSD and Dax

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.

EURUSD, 1H

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

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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