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USD Looks For Correction, EURUSD Can Bounce – Elliott

USD Index is in  pullback mode as we can see on the 4h chart, which appears to be only  temporary weakness. Keep in mind that because of that, five waves up from the May lows we believe that the uptrend will sooner or later continue.

USD Index 4h Elliott Wave Analysis

DXY 4h Elliott Wave Analysis June 2 2015 technical chart

If the greenback stays strong after any pullback, then EURUSD will remain weak. That said, on the hourly chart we are looking at an A-B-C recovery that is still incomplete. The recent price bounce from around 1.0880 where three waves down completed wave B, so we expect higher prices today, up into wave C that can stop at 1.1060 resistance. I would be interested to short EUR after this bounce.

EURUSD 1h Elliott Wave Analysis

DXY 4h Elliott Wave Analysis June 2 2015 technical chart

 

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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!