EURUSD, AUDUSD and the DAX - Elliott Wave Analysis

EURUSD, AUDUSD and the DAX – Elliott Wave Analysis

Some traders, however, have an extended weakness for a day because of holiday in the UK and US in observance of Memorial Day, so it can be another slow day. But markets are not sleeping; futures contract on stocks indices are up, actually at all-time highs on DAX and E-mini S&P500.

Technically speaking we see DAX rallying at the moment, but on daily charts we are still looking at a flat in progress with wave C now approaching 9946 resistance. At this late stage of an uptrend we also see some overlapping waves that can be an early signature for a coming reversal down in wave C.

DAX daily

At the moment stocks don’t help us much to predict or take advantage on the FX board as markets are not correlated. In the good old times you would see EUR at the highs as well, but that’s simply not the case today. On the hourly chart of EURUSD we see very slow and unidirectional waves and low volume. Therefore, pair can be trapped in some bigger correction that will send price up to 1.3700 before larger downtrend may resume. We still see very unclear waves on EURUSD with no interests to invest on this pair.

EURUSD 1h

So if you like USD pairs you may focus on clearer patterns. One of them can be AUDUSD that is now moving sideways but only within ongoing weakness. We see a triangle unfolding in fourth wave so wave prediction is pointing down, into wave (v) towards 0.9150.

AUDUSD 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!

View all posts by Gregor Horvat