Markets did not move much yesterday during the US sessions and also not much during Asian trading hours. As such, our outlook remains unchanged; we are looking for stronger USD moves, especially if we respect the USD Index, basket of currencies, that is showing a very nice Inverse Head and Shoulders pattern that is pointing for more upside in the coming days which means that EUR, GBP, CHF and others should be moving lower. Based on the H&S projections, price can reach 83.00 level next week
USD Index Inverse Head and Shoulders 4h
On the intra-day chart of the EURUSD we have seen a strong sell-off yesterday which we think it was wave three in the middle of a larger five wave decline, so current slow and sideways price action should be a corrective fourth wave that will send prices down in fifth in the near-term, towards 1.3200.
EURUSD 1h Elliott Wave Analysis
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