EURUSD Recovering for A Pullback, while DAX Looks Towards New Lows

Intermediate

EURUSD made a five-wave decline from the 1.163 highs which we labelled as end of a bigger correction of wave B/2. Current five-wave drop can now be part of an ucpoming bearish continuation within wave C/3, with current rally being recognized as a possible three-wave correction. This correction can be a simple a-b-c one, with potential resistance and a reversal region near the 1.151/1.155 area, where former swing high of wave iv) and the Fibonacci resistance ratios can act as turning points.

EURUSD, 1h

intraday eurusd

German DAX is trading in a downtrend, ideally unfolding a five-wave bearish impulse withn current consolidation representing leg iv) of three. We can see that wave iv) looks very sideways and also contracting, meaning it can be unfolding a triangle pattern. A triangle is a continuation pattern, which unravels prior to the final leg, giving us an insight on where the trend may still go. In our case, we think once the lower triangle line at 11506 gets broken, that is when sub-wave v) of three may be in progress, ideally towards 11450 zone.

German DAX, 15min

intraday dax

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Gregor Horvat

Elliot Wave Technical Analyst

Gregor Horvat is based in Slovenia and has been in the Forex market since 2003. He has been working for Capital Forex Group and TheLFB.com.

He is the owner of www.ew-forecast.com, which prov...continued

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