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The USD reversed strongly to the upside last week, with price on USD Index breaking out of a downward channel. This would be an important sign for a change in trend, even if just temporary.

For the next few days, maybe even weeks we will be tracking a minimum three wave rally up on the USD index which means that EUR, GBP, AUD and other currencies will probably further depreciate.

 DX nov 04 1h US dollar index Elliott Wave analysis technical overview and chart

So with a bullish view on the USD Index we are bearish on the EURUSD and are interested in short opportunities. However, we need a corrective retracement on the intraday basis before we may consider any shorts.

On the latest structure we suspect that prices accomplished a decline in red wave iii) so the current bounce is ideally part of a red wave iv) that may retrace even back to 1.3570. We could be looking for shorts from there but only if the current rise will unfold in three legs.

 eurusd nov 04 1h Elliott Wave Analysis technical tradinf forex currencies