If USD Bounces From Low, Would Limit EUR/USD Upside

USD was bearish last week as USD index turned down for a red wave 5) as shown on the 4h chart below. Wave 5) is a final leg within bearish structure, so we expect a bounce in minimum three waves. That said, upside can be limited on some pairs, such as EUR/USD, AUD/USD, GBP/USD and others.

USD Index 4h Elliott Wave Analysis

USD Index 4 Hour Chart

On EUR/USD, we can count five waves up from 1.1125, which means that wave 5) can be done. However, there are Fibonacci resistance levels above 1.1500 that can be reached still if 1.1322 support holds. A break beneath that zone and trendline will be important evidence that bears are coming.

EUR/USD 1h Elliott Wave Analysis

EUR/USD Hourly Chart

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