The Greek Plan Sets-Up New Bearish Leg For Dollar

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The plan for Greece is sending markets higher across the board, with Nikkei up more than 1.2%, Hang Seng Index +1.7% and China 0.18%, following the pattern form Wall Street. We see the similar situation on European markets that just opened and are already more than 0.5% in the green.

FX market was mostly consolidating in tight ranges, which are only corrective waves within larger pattern, which is clearly against the buck. We expect to see further weakness on dollar index, now towards 73.50 that will send other majors higher, such as Euro, Pound, Aud, and Cad. Regarding the Futures makret, traders should pay attention to 1354 and then 1367 highs on S&P Futures, where break should be extremely bullish signal for days if now weeks ahead.

Guest post by Gregor Horvat

Dollar Index Comments:

Very nice, sharp break lower on dollar index yesterday; definitely a move that you want to see when you are looking for continuation of a larger trend, downtrend in our case. Market fell below black wave 1 support and also below the trend line connected from 72.70, which confirms a bearish outlook. As such, further weakness should follow and send prices down towards the 72.50 target area for wave 3, while 75.10 holds!

Dollar Index Elliott Wave Analysis July 22 2011

Aud/Usd Comments:

Finally Aud/Usd moved higher and formed a daily close above 1.08 region that we paid attention on, which should now bring more bulls into action. We expect 1.1 to be hit early next week, as we looking for continuation within a wave 3. Critical region now stands at 1.0560, where wave 2/B( shows signs of a completion.

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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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