EURUSD Moving Into A Fifth Wave Ahead of Powell

Markets are not moving much. They slowed down after some dollar weakness over the last two trading days. We see US stocks coming down from resistance ahead of Powell today, so it appears that investors are waiting on more details before they may position themselves for a breakout. Will Powell be hawkish or more neutral with comments is the question. I think he may not give us any real bias yet, ahead of US CPI data this Thursday.

From an Elliott wave perspective, we see EURUSD coming higher after a nice pullback to 1.05 in the last few weeks, as we in past updates. A sharp and strong recovery l suggests that correction is finished and fifth wave in play. The ideal upward projection for a fifth wave is at 1.0850 so upside can be limited this month. Be aware of a correction.