DAX Elliott Wave Analysis: Bounce Can be Temporary

Elliott Wave Forecast Team ElliottWave-Forecast.com

DAX short-term Elliott wave analysis suggests that the rally to 12882.05 high ended Minor wave X bounce. The internals of that bounce unfolded as Elliott wave double three structure where Minute wave ((w)) ended at 12640.87. Minute wave ((x)) ended at 12468.68 and Minute wave ((y)) of X ended at 12882.05 high. Down from there, the decline is showing the overlapping price action suggesting that the decline in Minor wave Y is taking place as 3 wave corrective sequence i.e either ((w)),((x)),((y)) or ((w)),((x)),((y)),((x)),((z)) structure in Minute degree.

The initial decline from 12882.05 high is unfolding as Elliott wave zigzag correction in Minute wave ((w)) lower. Where minutte wave (a) ended in 5 waves structure at 12494 low. Up from there, the bounce to 12740.12 high ended Minutte wave (b) bounce in 3 swings. Decline from there is taking place in another 5 waves structure & reached the 12338.65-12245.56 100%-123.6% Fibonacci extension area of (a)-(b) to end Minutte wave (c) of ((w)). And soon, the index is expected to do a Minute wave ((x)) bounce in 3, 7 or 11 swings against 12882.05 high before further decline in Minute wave ((y)) of Y is seen. We don’t like selling it.

DAX 1 Hour Elliott Wave Chart

Become a Successful Trader and Master Elliott Wave like a Pro. Start your Free 14 Day Trial at - Elliott Wave Forecast.

Author

Elliott Wave Forecast Team

ElliottWave-Forecast.com

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold holds above $4,050 but momentum still missing

Gold builds on its modest intraday bounce and climbs above the $4,050 level on Friday, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

XRP retreats as ETF interest cools

Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.