We have seen a new strong leg up on US stocks on Friday, which has a strong impact also on Asian and EU shares. We see a gap up on DAX, ideally into wave five of C that we were talking about already last week. As such, despite a strong push higher there can be limited upside on European shares as that gap 100 points lower is expected to get filled. We see resistance at 1.3260-1.3330.
German DAX, 1h
While stocks were up, the EURUSD came under pressure, but so far only with three legs against the previous five wave rise, so we see current leg down as a corrective b-wave that can cause a new leg up this week for wave d, ideally towards 1.1880. However, a confirmation would be a daily close above 1.1811 black wave b swing high.
EURUSD, 1h
