German Dax and EURUSD Could Turn Bullish Very Soon - Elliott Wave Forecast

By: Gregor Horvat | Mon, Sep 30, 2013
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Markets gaped on Sunday, particularly against the EUR after five ministers in Berlusconi's party have resigned from the government coalition. Stocks futures are also lower, but based on German Dax wave structure and USD Index price action USD remains in downtrend while stocks could form a bullish reversal.

Last week we posted 4h bullish count for German DAX to our members and mentioned a possible retracement to open gap zone. Well, price is now lower and very close to that "reversal zone" so be aware of a move higher especially if we consider only a three wave pull-back from latest high which we think it was a wave four.

German Dax 4h

DAX 4-Hour Chart

German Dax and EURUSD have a positive correlation as we can see on the chart below, so if European stocks will rally then EURUSD should find a bid based on latest data. Meanwhile of course USD is expected to fall further aagints other rivals as well, which is fine if we consider a bearish trend on USD Index.

EURUSD vs DAX

EURUSD versus DAX 4-Hour Chart

USD Index

US Dollar Index Daily Chart

 


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Gregor Horvat

Author: Gregor Horvat

Gregor Horvat
www.ew-forecast.com

Gregor Horvat

Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on: SafeHaven.com, 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 www.ew-forecast.com he helps clients and educate them about the Elliott wave prinicple 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.

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