We wrote a couple weeks back on Gold breaking out to the upside. After giving the market a few days to develop its waves, it appears a bullish 5-3 sequence has unfolded to the upside. This presents a higher probability scenario that we may see at least one more 5 wave sequence higher. That means we probably have room to $1190 if not higher based on the longer...
The previous 2 down waves for Sterling appear to be impulsive. This sets up a bearish scenario that we’ll look to position for. The main EW count shown on the chart above suggests we are grinding higher in a wave (ii). This should be a partial retracement that likely terminates below 1.5650. The sweet spot of a reversal is in the 1.5500 area. If prices are...
As we approach major news events, one exercise I like to do is assess the possible wave picture before the event so when the volatility of the event hits, I'm mentally prepared with a plan. For anybody that has traded for a while, we've been caught in 'chasing' mode during a volatile news event countless times and it is no fun. What strikes me is that Thursday's...
The USDJPY chart is looking quite similar to the SPX500 chart. The wave picture appears incomplete to the downside. The current upward push terminated at a former swing low and is within the bounds of a 38-50% retracement of the preceeding 3rd wave. Therefore, we are anticipating a fifth wave lower to retest Monday's low near 116. Here are the internals we...
As we are about 90 minutes for the US Stock market bell ringing, overnight price movements suggest a gap higher on the opening. Assessing the wave pattern and wave measurements, it appears this opening gap likely will get faded as we retest the lows from yesterday. Prices could drift as high as 1970 and still be within the realm of a normal upward correction...
Today’s rejection at 1.1720 coincided with multiple wave relationships. It is difficult to determine which count is standing out as the confluence includes relationships from the top 2 counts. We’re leaning towards another 1 or 2 series of down-up sequences which suggests slightly higher prices. Therefore, the better risk to reward ratio trade suggests waiting...
AUDUSD is gathering bullish momentum. Given the long term bearish trend, this is a significant impulse wave towards upside. Keep an eye on this guys, this could be the reversal we all have been waiting for.
USDCAD could potentially be in its most powerful impulse upward. A move to the 1.600 area cannot be ruled out. A potential cup and handle breakout is in progress on the monthly chart, and an extension of (3) would put wave (5) in a key S/R zone. Monthly C&H: