By Elliott Wave Analysis Service | Markets are in risk on mode with higher stocks and lower USD across the board. The powerful move was seen on NZD on strong Employment data q/q (1.2% vs 0.5%). From a bigger picture we think that USD is in bullish mode and that current price action represents just a correction within current trend.
On the chart below we can see a clear powerful and directional move up on USD index which appears to be now in wave four so trend remains up for fifth wave. Support zone is seen at 80.30-80.50.
USD index 1h
With bullish view on USD Index we are still interested in EURUSD shorts (EPO unchanged). On this pair we also see prices moving sideways in wave four which still can reach levels around 1.3540-1.3560 before downtrend resumes.
Written by www.ew-forecast.com
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