EURUSD technicals look bearish - in positive correlation with

EURUSD technicals look bearish – in positive correlation with

As we all know markets moved significantly last week in favor of stronger USD after the FOMC statement and notes that the US Federal Reserve may start to begin tapering the quantitative easing program this year, if the country continues on the road to economic recovery as expected. This means they want lower unemployment rate in months ahead.

So, as mentioned above, USD is trading higher based on this news, while commodities, metals and stocks are falling. So after a long-time we finally have correlations back in normal shape, at least for now.

Market Correlations (Eur vs. S&P)

Based on strong moves last week we think that the USD will continue higher also in this week, so we are interested in long USD positions.

On the next intra-day count for E-mini S&P500 we can see five waves down to 1570 from where we would love to see a three wave rally before downtrend resumes. For now that’s not the case so ideally we will see test of 1597/1600 area before weakness resumes which should then send EURUSD lower as well.

S&P Futures 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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