Bullish Emerging Markets May Push EURUSD Higher
Oct 23 2019Today we will talk about emerging markets( EEM ) and EURUSD .
As you can see in the first chart, there's a positive correlation between emerging markets and EURUSD . Of course, there are no tick by tick correlations, but the current wave structure it's telling us that we may see a bigger recovery in the upcoming days/weeks.
Emerging markets can be trading in a three-wave (A)-(B)-(C) recovery up to 61,8% Fibonacci retracement and 46 area, especially after that break out of the corrective channel, so in our opinion EEM may easily stay in current bullish run.
At the same time we can see strong and impulsive reversal out of the wedge on EURUSD which is telling us that the temporary bottom can be in play and a bigger three-wave (A)-(B)-(C) move underway up to 1.15 - 1.18 area.
Notice that these are daily charts and they may take some time to completely unfold, so don't get confused on the smaller time frame charts. We just want to give you an idea, where the markets can be headed long/mid-term.
Be humble and trade smart!
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