Good data from the euro-area sent the EURUSD away from the lows, but other currencies are still under pressure, such as GBP and JPY while AUDUSD is sideways.
Today we decided to look at the USD Index and not EURUSD. The reason is a clear wave structure. Note that the rally from 84.76 was made in five waves, so actually a bounce on EUR and sell-off on DXY makes sense at this moment, as we expect three wave moves. Ideally, the USD index will return back to 85.50 minimum before bouncing higher again.
USD Index 30min Elliott Wave Analysis
USD is also bullish against the JPY because of higher European shares and a lower bund market. On USDJPY there is a possibility that the pair will break up into wave three towards 108.00 by the end of the week, but 107.12 must hold then.
The reason for the wave-three bullish view on USDJPY is also the German DAX that is now back at the highs after the recent three wave decline that can be wave ii), so the price can even go back to 9150-9200 in the days ahead.
DAX 30min Elliott Wave Analysis
