The stocks fell sharply yesterday, so we have seen a new leg down on DAX as well, which is now trading around 10710. But we see the prices in wave C expected to hit 10682, where the index can be looking for some support. From a technical perspective, a move from the top could still be corrective because of a three wave decline, so ideally, that’s wave 4) now searching for a support.
German DAX, 1H
If DAX will turn up, then EURUSD will fall further. On the chart below the price made a three wave bounce up to the 1.0825 level, which looks like a fourth wave; probably completed because of a three- wave rise, followed by a current intraday turn down to 1.0760. We still see EURUSD in bearish mode, which may extend its decline to 1.0600 area.
EURUSD, 1H
