Dax30 Index – two possibilities
Scenario 1: The bullish option supported by Elliot wave theory which argues for one more wave 5 higher before moving lower, this possibility exist while above 10,093 (wave 4 should not overlap wave 1)
Scenario 2 – The bearish option which suggest that The Index has already broken lower, the move higher last week was a re-test of the breakdown level and therefore the Index should continue lower for a minimum test of 10,847 which is the 38.2% retrace of the entire move higher. A break below 10,847 would target: 200dma at 10,569 and Fibonacci retrace which are 10,371, 9,895 and possibly 9,306.
EUR/USD: really isn’t clear at this stage, various of possibilities with the boundaries being 1.0458 Vs 1.1467-82. If you want to play the European Market probably better focus on Stock Indices. The Moving average setup and longer term oversold conditions don’t support a move lower. Also, there seems to be a consensus that the CCY pair will gap down on the start of the week but recent correlation: (Lower equities Vs Higher EUR/USD) does suggest otherwise, I would not chase a move lower.
S&P 500 Index – a break below 2067-2072 would target 2025, medium term bearish below 2134-38 with a 1,885 and possibly 1730 target. Please see last week paper for
Hope this helps ….Barry
