EURUSD & the USD Index Are Correcting Before Moving

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European stocks were down for around 4% earlier today in growing risk regarding the “Grexit” after a serious escalation in the Greek crisis. The euro was down across the board when markets opened, but the currency is recovering now against the dollar and trying to fill the open gap around 1.1160.

On the updated chart of EURUSD we see a completed wave D) at the latest low, so the current rally can be wave E) which has two resistance levels. The first one is at 1.2220, while the second one comes in near 1.1400. We expect to see a turn down from one of the highlighted regions, but will pay close attention to the first one as sometimes E)-waves can be small and not so deep.

Elliott Wave Analysis – EURUSD 1h

EUR june 29 2015 Elliott Wave Analysis currency trading forex

The reason for the bearish view on EURUSD after the pullback is done, is the USD Index, where we see a clear impulsive trend to the upside. We are observing two wave counts, but both suggest more gains ahead after a three wave set-back to around the 95.30 zone where support can be found.

Elliott Wave Analysis – USD Index #1

dx june 29 2015 1 Elliott Wave Analysis currency trading forex

Elliott Wave Analysis – USD Index #2

dx june 29 2015 Elliott Wave Analysis currency trading forex 2

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About Author

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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