German DAX Stock Index And AUDUSD Look Weaker
Stock-Markets / Stock Markets 2013 Dec 04, 2013 - 12:25 PM GMTTraders, the stock market is looking weak for the last 24-48 hours. We have seen DJIA, S&P500 and NASDAQ all down between 0.2 and 0.6%. The similar pattern was also seen during Asian session with NIKKEI and HSI down 2.17 and 0.76%. German DAX also reversed significantly lower in this week so it seems that stocks are turning slightly bearish but most likely only for another correction. On German DAX daily chart I see wave four unfolding back to 8970/80 region.
German DAX (Dec 2013) Daily Elliott Wave
I am not really sure how the weak stock market will impact the EURUSD, simply because correlation is not working for the last couple of months. However, I see weak AUDUSD which I believe will stay bearish and even accelerate to the downside as long as stocks will be in pullback mode. So for shorts AUDUSD may not be a bad idea.
DAX vs EUR vs AUD 4h
On hourly chart of AUDUSD we have seen a nice, perfect reversal from 0.9145 two sessions back where wave E completed a running triangle in wave B). Pair is now already at the lows so we are tracking wave C) down that should by made by five smaller waves. As such, we expect more downside, to 0.8950 possibly even to 0.8900. Any small pullback later today could stops at 0.9050/60 region
AUDUSD 1h Elliott Wave
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Ew-forecast.com is providing advanced technical analysis for the financial markets (Forex, Gold, Oil & S&P) with method called Elliott Wave Principle. We help traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our view and bias as simple as possible with educational goal, because knowledge itself is power.
Gregor is based in Slovenia and has been in Forex market since 2003. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets; from candlestick patterns, MA, technical indicators etc. His specialty however is Elliott Wave Theory which could be very helpful to traders.
He was working for Capital Forex Group and TheLFB.com. His featured articles have been published in: Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu. He mostly focuses on currencies, gold, oil, and some major US indices.
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