Written by Elliott Wave Analysis Services |
The USD is mostly higher across the board ahead of highly awaited ECB press conference and Bernanke’s speech later today at 19:30GMT. So there are plenty of reasons why market could move strongly today in either direction. We in fact could see stronger USD, which would not be surprise because I can count five waves down on USD Index so it might be time for a corrective retracement.
USD Index 4h
With potential USD Index rally we must consider bearish scenarios for EURUSD. However, I am still tracking two different wave counts. The first one shows a corrective wave two pull-back which must find a low around 1.3500. If not, and if pair will slip lower, then we will have to go with the bearish view, with ending diagonal in place in wave five.
As I am looking across the board, the only pair which has a solid bullish structure against the USD is GBPUSD, which could now be in wave iv pull-back, testing 38.2% retracement area. Invalidation level is at 1.6095, but for any longs 1.6110 stop should be enough. If price will go below that level then we will know that GBPUSD is also moving in larger corrective reversal.
Written by Elliott Wave Analysis Services
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