Some traders, however, have an extended weakness for a day because of holiday in the UK and US in observance of Memorial Day, so it can be another slow day. But markets are not sleeping; futures contract on stocks indices are up, actually at all-time highs on DAX and E-mini S&P500.
Technically speaking we see DAX rallying at the moment, but on daily charts we are still looking at a flat in progress with wave C now approaching 9946 resistance. At this late stage of an uptrend we also see some overlapping waves that can be an early signature for a coming reversal down in wave C.
DAX daily
At the moment stocks don’t help us much to predict or take advantage on the FX board as markets are not correlated. In the good old times you would see EUR at the highs as well, but that’s simply not the case today. On the hourly chart of EURUSD we see very slow and unidirectional waves and low volume. Therefore, pair can be trapped in some bigger correction that will send price up to 1.3700 before larger downtrend may resume. We still see very unclear waves on EURUSD with no interests to invest on this pair.
EURUSD 1h
So if you like USD pairs you may focus on clearer patterns. One of them can be AUDUSD that is now moving sideways but only within ongoing weakness. We see a triangle unfolding in fourth wave so wave prediction is pointing down, into wave (v) towards 0.9150.
AUDUSD 1h
