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We can see some USD strength at the start of this European morning coming back into the market: a move which has been expected based on the latest intraday price action.

We were looking for a three wave move down on USDCHF with our members, and so far we can see that pair nicely found a bottom around 0.9190 from where we can see some encouraging upside reaction.

Looks like we could be heading back to 0.9290, and possibly 0.9330 this week.

USDCHF 1h

usdchf aug 26 2013 Elliott Wave analysis for currency trading forex

EURUSD is also now reversing from our »do or die « level placed at 1.3400, but still need a channel break and impulsive structure (five waves down) from above 1.3400 to make sure we are going lower.

EURUSD 1h

eurusd aug 26 2013 Elliott Wave analysis for currency trading forex

For now we are sitting on our hands: no official trades, but we are watching USDCHF, EURUSD and AUDUSD very closely for possible USD long set-ups.

But at the moment however, I think it’s too soon for trades, it’s still only Monday and also holiday in the UK, so I believe it’s better to wait on more price action and see it then if USD rally has already began or no, and then go with the flow.