European shares are still under pressure today as Greece’s international bailout program is set to expire, suggesting that the country could default. EUR has recovered nicely and filled the gaps across the board, but we don’t think that it will continue higher.
From a technical perspective we only see a three wave rise on EURUSD in play now which could lift the pair up to around the 1.1300-1.1400 area where wave E) could complete a big triangle formation. As such, we see the current bounce as only temporary and will turn bearish once three waves are done.
Elliott Wave Analysis EURUSD 1h
Our reason for being bearish EURUSD is a bullish structure on the Dollar index with five waves up since mid-June. Notice that yesterday market turned down sharply, but most likely only into wave (A) of a three wave set-back that may complete a decline near 94.50.
Elliott Wave Analysis USD Index 1hGet the 5 most predictable currency pairs