We have been closely watching for the end to an upside corrective bounce from the Aug 2019 lows, the same look can be seen on many other European markets such as the Cac 40 and Euro Stoxx 50. Last weeks high could be enough to suggest the upside has ended, although until we see either an impulsive decline below 11800, then we can still allow for a bit more upside.

As long as any further upside remains below 12650 then we are going to stay bearish and target more weakness and continue to look for a move below 10000 and retest the Dec 2018 lows.

Staying bearish below 12650.







European traders that are actively trading the FTSE, CAC or DAX, should take note of the look from the mid-August lows. If the bounce remains in 3 waves, then it can set up for a move lower, you can cross- reference most of the major European markets such as the AEX or Euro Stoxx 50, they too are showing the same 3 wave looking rally at the moment. If that remains, and the current upside holds below their respective Jul 2019 highs, then it can set up for a move lower.






Get more financial insights like these -- 100% free. Just follow this link

The content of this article is for educational purposes only, the information supplied shall not be construed as a recommendation to buy or sell any security or financial instrument. Wavepatterntraders will not be held responsible for any losses occurring from the information provided within the article. The information expressed within the article is solely the opinion of the author/owner. Wavepatterntraders are not registered investment advisers. Readers are strongly urged to consult an investment consultant before making any financial decisions or investments.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD consolidating as markets digest the new US-Sino trade truce

EUR/UDS is trading around 1.1030, little changed. Markets are digesting the US-Sino handshake deal that prevents new US tariffs that were planned for Tuesday. Euro-zone industrial output is due out.


GBP/USD slips below 1.26 as Brexit talks drag

GBP/USD has kicked off the new week with a drop below 1.26 as Brexit optimism fades. Intense weekend talks have failed to result in an accord. Negotiations continue ahead of the EU Summit. 


USD/JPY consolidating bull rally into 108 handle on US/Sino trade deal optimism

USD/JPY starts out the week flat to Friday's close after markets rallied at the end of the week. Bullish geopolitical undertones in the form of a US/Sino 'phase 1' trade deal help lift USD/JPY onto the 108 handle.


Forex Today: Markets skeptical about US-Sino trade truce and sterling suffers a hangover as talks continue

Markets are cautious regarding the US-Sino partial trade deal. The world's largest economy agreed on a "hand-shake" agreement which is yet to be written. It includes a Chinese commitment to buy agrifoods.

Read more

Gold sellers cheer US-China trade optimism against all odds

With the US and China near to end the two-year-old trade tussle, Gold bears give little importance to doubts over soft Brexit and tension surrounding Syria while flashing $1,484.70 as a quote during Monday’s Asian session.

Gold News

Forex Majors