EUR/USD, FTSE 100 in third waves down

EUR/USD

DMI: Bearish

Sentiment bearish

MACD : bearish

RSI: Neutral

Moving averages crossover: bullish

 

 

 

EUR/USD: Indicators are mostly bearish and the Elliott wave is wave A down. The euro is tracing out wave A of a downward zigzag [A,B,C]. The pattern is a long term triangle [(A),(B),(C),(D),(E)]. wave (C) is over and wave (D) down is underway. What we are seeing now is the start of wave (D) down in three waves [A,B,C]. The first wave down is wave A, this wave is in five waves [i,ii,iii,iv,v (circle)]. The DMI’s +DI line has crossed below the -DI line (bearish).

FTSE 100: The FTSE is trading lower today following a rather hawkish FOMC statement. Markets sold off after the release of the statement last night on concerns interest rates will go up in June. That was a surprise given the recent weak economic data, investors were expecting a dovish statement and the market rallied ahead of the report. The dollar is surging and commodity prices are lower which means the decline will extend later as the move down is a third wave.

Thierry Laduguie is Trading Strategist at www.e-yield.com

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