E EUR/USD And USD Index Analysis

EUR/USD made a bullish run last month, which found a temporary top around the 1.118 area, and can now be slowing down for a temporary a-b-c correction, with possible support/turning point area near the 1.100/1.097 region. A strong rally and a break above 1.109 would suggest a completed correction and more upside.

EUR/USD, 4h

Now, the same goes for USD index, however, here we see price trading into the opposite direction; we see a corrective a-b-c leg at potential resistance/bearish turn (98.4/98.6 region), from where a sharp drop lower may follow.

As you know, the EUR/USD and USD Index are trading in a negative correlation, that is why one is pointing higher, and the other one is pointing lower.

USD index, 4h

 

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