(Jing Ren – Orbex)
The structure of the DXY index hints at the development of a large triple zigzag w-x-y-x-z of the cycle degree.
Most likely, a cycle actionary wave z is currently under construction. The internal structure of the wave z suggests a triple zigzag Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ. Perhaps the first four parts of the triple zigzag are fully completed, and the primary wave Ⓩ is still developing. It may take the form of a double zigzag (W)-(X)-(Y) of the intermediate degree.
Bulls can push the price up again to the maximum of 109.34, marked by impulse iii. The goal is determined using the Fibonacci extension tool. At that level, wave z will be at 161.8% of the previous actionary wave y.
In an alternative scenario, the cycle actionary wave y was longer, and at the time of writing, it had come to its end. The wave y has the form of a primary triple zigzag.
Thus, if this option is confirmed, in the near future the market will move in a downward direction, building a cycle intervening wave x. The intervening wave x is similar to the primary zigzag Ⓐ-Ⓑ-Ⓒ.
It is possible that the price will fall to 104.66, as shown on the chart. At that level, wave x will be at 23.6% along the Fibonacci lines of wave y.
EUR/USD shows bullish formation ahead of FOMC [Video]
(Gregor Horvat – Wavetraders)
Russia’s Gazprom announced that it will slow flows on its Nord Stream 1 pipeline and that they will halt another turbine in the pipeline to Germany, which will reduce the flow to just 20% of capacity (currently at 40%) from July 27. This can cause plenty of issues in Europe so stocks turned down recently due to recession risk. However, DAX is still holding and doing quite well above that 13k support level, while the EURUSD also remains in uptrend. From an Elliott wave perspective, we see EURUSD pair in a minor intraday consolidation from where we expect a break to the upside as that bounce from parity unfolded in five waves. However, there is always a chance for a more complex correction especially as traders will likely wait on the sideline till the FOCM tomorrow. So if we see more weakness, the deeper support is at 1.01.
If you are interested in more detailed outlook of the EURUSD pair and other markets, then make sur to check our latest video below.