German DAX pointing to a weaker EURUSD – Elliott Wave


The German DAX index is in down-trend during this week, the same as EUR/USD from the Feb 13 high. Also, both markets reached new lows this morning at the same time, so we can say that correlation between these two is very tight. This tells us that for the near-term predictions on EURUSD we should focus on the DAX more often and not so much on the US stock market which is still in an uptrend. OK, now let’s go and see the DAX intraday structure.

DAX Elliott Wave Analysis February 15 2013

We can count five waves down from 7734, with a triangle in wave iv). That’s very important. Why? Because triangles occur prior to the final move of the larger pattern, so our wave v) should then be last leg in wave (i).

The interesting part is that we know that after every five waves correction follows, and this is what we expect on DAX; 3-wave retracement in wave (ii) ideally back to 7650/70.

EUR USD Elliott Wave Analysis February 15 2013

So, if correlation between the DAX and EURUSD will remain tight, then a bounce on EURUSD would also not be a surprise. A three wave retracement in wave B back to 1.3400 should be interesting for a short position…if we get a pull-back.

Traders, I hope this analysis makes sense. Have a good weekend.

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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 His feature articles have been published on,, Action forex, Forex TV, Istockanalyst, ForexFactory,,, etc. He recently won the award on 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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