Risk-on trend is in play since yesterday’s FED press conference. The S&P is at new highs while the DAX is lagging a bit, but it looks like that continuation will be to the upside on European stocks as well.
At the same time we can see USD moving to the downside, which has been technically expected already since start of the week. Based on the latest strong reaction we suspect that USD will stay in bearish mode for the next couple of days.
On the EURUSD chart below we can finally see the pair showing us bullish swings with impulsive personality after the recent extensions to 1.3640. This looks like a wave three of three in progress that could slow down around 1.3650 in the short-term. However, any pullback in three legs will be considered as a corrective wave within the ongoing trend.
We expect EURUSD to continue towards 1.3700 as long as market trades above 1.3580, short-term invalidating level.
EURUSD 1h Elliott Wave Analysis
