Wed, Oct 05, 2022 @ 16:05 GMT
HomeContributorsTechnical AnalysisEUR/USD Testing Parity, Can CPI Cause a Rally? Elliott Wave Analysis

EUR/USD Testing Parity, Can CPI Cause a Rally? Elliott Wave Analysis

USD is trading higher, at 1:1 vs EUR, which is a very big level. At the same time, we also see stocks moving slightly lower but this can be an only short-term intraday weakness as traders will mostly stay patient or on the sideline till tomorrows important US CPI figures. Keep in mind that if inflation would slow down, just slightly, then this can be the first point to limited interest rate hikes by the FED and US yields may come down and pull DXY lower as well.

From an Elliott wave perspective we see EURUSD moving to a very big level now; currently seen in a fifth wave here around party, As such, I would not be surprised if we see some back and forth moves around this figure, or ideally even a technical reaction higher in the near term. From an Elliott wave perspective, a three-wave rally is something we would normally expect after five waves down from 1.0615.

Elliott Wave Financial Service
Elliott Wave Financial Service
Trading forex, futures or futures options carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could lose some or all of your initial investment; therefore you should not invest money that you cannot afford to lose. Our website and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions.

Featured Analysis

Learn Forex Trading