Elliott Wave Analysis: EURUSD May See More Weakness
|Good morning traders!
We have seen some nice dollar gains in the last few sessions against some major currencies, such as EUR, GBP; CHF and JPY, but not against commodity currencies. So if you are looking at Dollar Index price chart and want to be involved in long dollar trade, then I would say to avoid commodity pairs at the moment as these are not calculated in DX quote; well only CAD is but for 9.1%, while EUR has 57.6% weight. We also see commodity markets moving in-line with higher stocks, which is another reason why commodity currencies are doing quote well compared to EUR, GBP, JPY and CHF.
That said, if DX is headed higher then my eyes should be on EUR/USD and positively correlated pairs. I like the structure on euro at the moment, because of clear five wave fall from 1.0905; an impulse that can see a reversal now in three waves. I will normally wait on prices to retrace at least 38.2% before I may look for a resumption of a downtrend. So first resistance is seen near 1.0800, while second and maybe more important one is at 1.0825.
EURUSD, 1H
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