The USD is on the move since yesterday when the FED said it would reduce its monthly bond purchases by an additional $10 billion to $55 billion. The USD also recovered on hints from Fed Chair Janet Yellen that the bank could begin to raise interest rates sooner than anticipated.
Gold is moving down, S&P falling as well and USD is up against all other major currencies. Our focus today and tomorrow will be on EURUSD. A decline from 1.3966 March high is in three legs, and now we need to have to wait on important evidences, either to confirm a corrective retracememnt which would allow us to look for longs once the market bottoms or we wait more signs for a bearish impulse as this one is also one of the possibility. However, for a bearish case we would need to see further impulsive weakness down 1.3700/40, to make sure it’s an extended wave (iii).
EURUSD count #1
EURUSD count #2
Bearish count has my special attention because of the S&P Futures that can revisit 1820 level from last week. EURUSD and S&P has positive correlation now; in fact EURUSD is even weaker than the S&P so if S&P will fall down, which is expected then EUR may lose even more value against the USD .
EURUSD vs S&P 1h
Written by www.ew-forecast.com
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