Turning point in the DAX?

May 9, 2016 11:37 AM

German DAX

German DAX is trading in an intraday bearish structure, now possibly in sub-wave 5, which is the final leg of an impulsive decline. We labeled it as wave C). We think that wave 5 will extend toward some Fibonacci projected ratios(161.8, 261.8) which can react as a resistance and a turning point into bullish mode, above wave 4 swing.


German DAX - 1hr


On EUR/USD we are tracking a nice impulsive decline from recent highs, which could be in its final stages, as we can already count five visible sub-waves on the line chart. Line charts sometimes make price data easier to read, than the bar chart. That said we now think, that price can potentially make a temporary bullish run as in an A-B-C corrective from, that can find possible resistance near 1.1480 zone.

More weakness could then be in the cards.


EUR/USD - 1hr

About the Author

Gregor Horvat, based in Slovenia, has been in the forex markets since 2003. He is a technical analyst and individual trader who has worked for Capital Forex Group and TheLFB.com. He also is founder of forex services on www.ew-forecast.com. EW-Forecast.com provides technical analysis of the financial markets, highlighting behavioral patterns based on the Elliott Wave Principle (EWP). Website: http://www.ew-forecast.com/