Elliott Wave Analysis: German DAX, S&P500 And NZDUSD

Grega Horvat

Stocks and XXX/JPY pairs gaped nicely higher during the weekend, and it looks that more gains may follow soon on equity markets. We are looking at both; DAX and E-mini S&P500 which can be headed much higher this week as we see recent downward corrections completed. Dax is in impulse up, ideally within wave 3) headed up to 12500-12550, while S&P500 can be underway to new all-time highs as we called end of a wave b set-back already on Friday.

German DAX Hourly Chart

German DAX Hourly Chart

S&P 500 30 Minute Chart

S&P 500 30 Minute Chart

On the FX board, we see dollar in mixed position, strong against AUD and JPY, but weak against GBP and even NZD at this hour. We are focused on NZDUSD where we see unfolding complex corrective rally within wave 2) that has a room for 0.7350 this week, where gains may face a nice technical resistance. In fact, we think this can be wave 2) bounce, so if we are correct then a bearish turn can be very strong later this week.

NZDUSD HourlyChart

NZDUSD HourlyChart

Source: www.ew-forecast.com

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