Written by www.ew-forecast.com |
The USD is still under pressure but some of the latest price action suggests that we could see a reversal soon.
On EURUSD we see five waves up, but after every five waves correction follows, therefore be aware of a bearish swings in coming sessions, either from current levels or from 1.3310
EURUSD 30min Elliott Wave Analysis
We are also still keeping a close eye on USDJPY, where only three wave rally from 98.52 to a new high suggests that market could be forming a flat correction. With that said, wave (c) could show up before we may finally turn bullish.
USDJPY 1h Elliott Wave Analysis
The reason why we are considering one more leg down on USDJPY are US bonds, where we expect a wave c rally up on 30, 10 and 5 year notes.
USDJPY vs 10year US notes
With that said, we are still interested in USDJPY longs, but we need lower levels and completed corrective move on US bonds. Because when again US bonds will turn south, yields will go up which will be supportive for USDJPY.