DAX Elliott Wave Analysis Calling Rally To Fail for Extension Lower

Technical analysis of Forex market

DAX has broken below Oct 26 low (11051) and suggests that the Index has resumed the decline lower. We are calling the decline from July 27 high (12886.83) as a triple three Elliott Wave Structure where decline to 11051.04 low on Oct 26 ended Intermediate wave (Y) and bounce to 11692.91 high on Nov 2 ended second Intermediate wave (X).

Down from 1162.91, short term Elliott Wave view suggests that the decline has resumed with the break below Intermediate wave (Y) at 11051.04. Structure of the decline is unfolding as an impulse Elliott Wave where Minute wave ((i)) ended at 11310.72, Minute wave ((ii)) ended at 11566.79, and Minute wave ((iii)) ended at 11009.25. Internal of Minute wave ((i)) unfolded as a 5 waves leading diagonal while the internal of Minute wave ((iii)) unfolded as 5 waves impulse of lesser Minutte degree.

Currently Minute wave ((iv)) rally is in progress and while the bounce fails below 11692.91, we expect Index to extend lower. We don’t like buying the Index and expect rally to fails in 3, 7, or 11 swing as far as pivot at Nov 2 high (11692.91) stays intact. DAX 1 Hour Elliott Wave Chart

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