In this week we will keep a very close eye on the S&P500, which still shows clearly corrective but incomplete decline towards 1200 area. In the first two days of trading, we expect some dollar buying, actually a continuation from the past week, while S&P will look to make a one more low within corrective move. In fact, euro recovery appears clearly corrective on 1h chart below, so we expect further weakness here, before trend reverses in-line with the S&P. But then it will be time to keep an eye on Aud/Usd, as already discussed in the past weeks video analysis. If you missed it click here.

Eur/Usd

Euro is trading sideways for the past few sessions, trapped between two parallel trend line. So far, we still do not have enough evidence for a completed wave (iv), especially after only a minor three wave fall from Fridays peak. As such, more sideways and potentially even upward price action is possible, before complex wave (iv) is complete. We are also keeping an eye on incomplete triangle.

However, the most important is that recovery from the lows is corrective and that larger downtrend should resume!