Elliott Wave Analysis On USD Index And EURUSD
The USD index is trading higher as EUR, GBP, CHF and JPY trades down against the USD, based on bearish reversal on US Treasury notes. However, commodity currencies are still doing well and we guess it has to do with higher commodities, particular grains and energy markets.
On USD index we were looking for a completed ending diagonal this week near 94.60 from where we have seen a very strong turn in the last 48 hours, back to the start point of the pattern shown at 95.05. Some would thought that bulls will now stop at this area, but we see a new impulsive wave in place so more gains are expected after a fourth wave pullback down to around 94.70/80 area.
USD Index, 1H
EURUSD
If USD index is going up, then EURUSD should fall further as well, but after a pullback up to around 1.1290-1.1300 area. We see EURUSD in bearish trend as long as price is beneath 1.1346.
EURUSD, 1H
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