More Strength For Australian dollar As Risk Trades higher

Stocks trade higher, and the S&P Futures at new highs around 1267 on optimism that European leaders will approve aggressive plans by the end of the week to rescue the region from a debt crisis.

Meanwhile, majors found some support against the US dollar, but moves were really poor with some low volume and momentum. We, however, expect further dollar weakness, especially as recovery shown on dollar index appears corrective from Nov 30, labeled as wave X, but still not sure if finished already.

With this being said, we need consider more choppy and slow price action on Eur/Usd, Gbp/Usd, Aud/Usd and others as well.

Dollar Index chart:

Guest post by Gregor Horvat

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With further strength on stocks, we still believe that Australian dollar will improve, despite a cut from the RBA two days back.

You can also check the video below in which Grega Horvat will present a detailed technical analysis for Eur/Aud and Gbp/Aud that was shared with his subscribers but now also available to you!

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!

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