The EUR is falling while the USD is trading higher after the recent turn down on gold and bullish swings on stocks. We expect more downside on EURUSD this week as we see more gains coming on the DAX which is also supportive for bunds.
Notice that the German bund market is showing a nice bullish pattern after five waves up followed a recent three wave decline into the 50-61.8% retracement area from where we expect a bounce in an impulsive fashion, ideally back to 152.50 and even higher. This would likely mean more weakness for EURUSD based on latest correlations.
Elliott Wave Analysis – BUNDS 1h
On EURUSD we can see a nice turn down in the last 24 hours with the current price trading near the wave B termination point where a breakdown will confirm a weak EUR and possibly open the door for a wave D) decline towards 1.1050.
Elliott Wave Analysis – EURUSD 1h
In our latest podcast we digest the dollar dove dive, update on Greece and preview next week’s events.
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