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Greenback Supported by Lower Equities

Global markets are down ahead of the US session, a decline that should be part of some larger, deeper pull-back. We know that pull-backs are structured by at least three waves; even if it’s only corrective move, which means that we should see more weakness on stocks after small near-term rally, suggested by the S&P Futures chart below.

Guest post by Gregor Horvat.

If we are correct, then dollar should be supported which means that Eur/Usd, Aud/Usd and Gbp/Usd should trade below resistance, while Usd/Cad above the support.   Trader may look for Long USD moves in the near future with this outlook; of course if things will not change dramatically.

One of the weakest currency today is Pound, so selling Gbp/Usd makes sense, rather than Eur/usd per example.

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Gregor Horvat

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!