Wednesday, June 19, 2013

Elliott Wave Review: EURUSD, USD Index and E-mini S&P500

EURUSD and S&P are higher in this week, but generally speaking markets are slow and sideways ahead of FOMC later today. On EURUSD we are tracking an ending diagonal in fifth wave but as long as we have higher highs and higher lows in place trend remains up with possible test of 1.3450 in the near future.
EURUSD 1h

The reason why we think that EUR can reach higher levels is the following USD index chart where price is still above its lows from last week. Notice that we are observing a triangle here with wave (e) in view, before we see break lower that should support the EURUSD. Critical level on USD Index is around 81.00; market is bearish below it.
USD Index 1h

E-mini S&P500 were higher in the last few sessions and successfully moved through 1647 that we highlighted it several times in our past updates. We still believe that market is making a wave (c) rally from 1596, so we need to be aware of a reversal lower from 1655/1660 region.
S&P Futures 1h

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