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Elliott Wave Intra-Day Review: EURUSD And S&P

US stocks moved sharply higher yesterday and it seems that risk-on is trade is back in play. Meanwhile Japanese yen lost some value against the majors which has been expected as correlation between stocks and XXX/JPY pairs is positive. The only surprise is EURUSD which is still trading above 1.3300 level despite a negative correlation with stocks based on inter-market analysis of the last few weeks; when stocks were up, EURUSD was down and vise-versa. However, below we have a chart of the E-mini S&P500 where we can count five waves up so here more gains is expected which will sooner or later cause a sell-off on the EURUSD. Support for S&P comes in at 1624.

E-mini S&P500 30min

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On the EURUSD we expect near-term weakness towards 1.3276 either move is just wave c of a corrective pull-back or not. If EURUSD will remain sideways today and trapped in 1.3276-1.3390 range then we will start tracking a triangle pattern.


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