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

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/

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