Elliott Wave Analysis: EURUSD and USD Index

Good morning traders!

We have seen mixed reaction to poor NFP figures on Friday, with first spike down to 1.1660 on EURUSD but then market finished higher, around 1.1730 which makes an interesting turn for the pair. As you know we have been racking final stages of a five wave fall on euro, so bottom can be finally here if we consider that market rallied in five waves up from recent lows. There is room for a bigger recovery this week, in minimum three waves back to 1.1780, or even to 1.1830.

EURUSD, 1H

At the same time we see USD INDEX turning south from 94.12/40 resistance that may suggest a pullback down soon, either from here or from another final high if we also do not ignore a possibility of an ending diagonal.

USD Index, 1H

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com