US Dollar Index needs to clear above 98.00 handle to set free into the buy zone and confirm further upside. Please note that the drop from 103.00 through 95.70 has been corrective until now. Until prices hold above interim support at 95.70, US Dollar Index would remain bullish. At the moment, the index is trading at days' lows at 96.40/45 and it remains to be seen...
EURUSD has shown quite a bit of resilience and bounced back sharply from 1.1250 handle. The currency might be testing resistance around 1.1330/35 (fibonacci 0.618 retracement) as bears remain poised to resume lower. The wave remains unchanged from our earlier discussions, as EURUSD might have carved a meaningful top around 1.1400 levels earlier. Furthermore, the...
SPX500 seems to be ready for the next round of selloff towards 1750 at least as Wave (3) of a larger degree progresses. Moreover, the conventional Head and Shoulder reversal pattern is also ready with the last step, the Right Shoulder around 3230 before reversing lower. It is not seen here but the indice might be preparing to drop lower as Wave 3 unfolding at...
Gold has managed to hit yet another high around $1818 early this week. There is nothing wrong in adopting the conventional method of buying an uptrend. We refrain from doing so because of the following: 1. Gold is in a larger degree corrective wave (zigzag) since 2011 highs at $1920. 2. Wave (A) of the zigzag was in 5 waves and terminated around $1046. 3. Wave (B)...
US Dollar Index has sharply reversed from 96.24 lows, keeping the larger degree structure intact as discussed earlier. A push above 98.40 would add more confidence to further rally. One of the probable reasons to turn bullish in the US Dollar Index is as follows: The drop from 103.00 through 95.70 is in 3 waves, hence corrective. The recent rally from 95.70...
EURUSD holds the proposed wave structure discussed earlier and reverses after 1.1365/70. The currency might need to print another low below 1.1260 before producing a meaningful retracement. Either way, bears are looking in control and EURUSD should be heading lower towards 1.1000 and 1.0755 levels, going forward. The larger degree wave structure suggests that...
Bitcoin rally yesterday could be a lower degree wave ii (not labelled here) within the overall corrective phase that had begun from 10500 levels earlier. The crypto has found resistance just above the fibonacci 0.618 retracement of the drop between 9800 and 8800 earlier, around 9425 levels. Ideally, a bearish reversal is expected to turn prices lower below 8800...
Dow Jones structure remains unchanged and under most likelihood, the indice is heading lower in larger degree Wave (3) since 27700 highs on June 09, 2020. The indice has been carving a lower degree Wave 2 (Wave 1 was between 27700 and 24544) since then and it might be complete around 26400. We still cannot rule out the possibility of another lower high below...
GBPUSD prints potential Wave B, around 60 pips higher than fibonacci 0.618 retracement of Wave A. The recent rally can have no more attributes than this. Structurally, GBPUSD has dropped from 1.2800 through 1.2250 in 5 waves, labelled as Wave A. It confirms 2 important facts: The drop is only a part of the correction Wave A here. Another drop below 1.2250 is...
EURUSD might have taken most traders by surprise with a strong rally towards 1.1365 levels. The currency had since pulled back and might have carved an impulse at a lower degree, trades around 1.1320/25 for now. An short lived counter trend rally could on cards now, before the drop resumes towards 1.1000 and lower. The structure since 1.1167 until 1.1365 could be...
SPX500 has most probably completed a lower degree wave ii, corrective flat around 3184 yesterday. If this holds well, the indice should stay below 3200 ad reverse sharply towards 2750 in the near term. The indice is trading around 3145 and a break below 3120, immediate support should be extremely encouraging to bears. At a larger degree, the indice has carved...
Gold has managed to clear above $1790 and print yet another high close to $1798. Believe it or not, with each new high registered in Gold, the RSI is showing a bearish divergence along with Silver price action. It is nobody's guess whether Gold has topped or not, but a certainty that upside remains limited from here. Immediate support now remains around $1750 mark...
US Dollar Index is trading close to 96.88 around this time and might drift sideways for a while before breaking higher again. It is important for the index to stay above 95.70 potential support to keep the bullish structure intact. Also note that breaking above 98.20/30 levels would confirm that a meaningful bottom is in place. Also note the resistance trend line...
EURUSD has reversed from 1.1340 levels yesterday. The drop is still in 3 waves hence corrective, but an impulse will confirm a meaningful top in place at 1.1340/45. A drop below 1.1258 would confirm an impulse and EURUSD will be good to sell on rallies thereafter. Alternately, if bulls manage to push prices higher towards 1.1350, they would threaten to push...
Dow Jones might have completed a running flat at 26400 yesterday to terminate lower degree Wave 2. The indice looks to be setting up for a sharp reversal towards 18200, looking at the bigger picture. The conventional Head and Shoulder pattern also seems to have carved its Right Shoulder around 27600/700 levels on June 09, 2020. Probable larger degree wave counts...
DAX has managed to stay below 12900 resistance until now. The index had reversed from 12840/50 levels yesterday, and is seen to be trading lower around 12582 as we prepare to publish this short term update. The larger degree probable wave counts are suggesting that DAX might have carved Wave (1) and potential Wave (2) around 8200 and 12900 respectively. If the...
GBPUSD has rallied back through resistance zone around 1.2520/30 from the day's low. Structurally, GBPUSD is seen to be in a corrective phase since 1.2800 handle. The single currency pair is on its way to produce an A-B-C drop towards 1.1950 levels. Also note that fibonacci 0.618 retracement of the entire rally between 1.1414 through 1.2800 is also passing through...
EURUSD had dropped to 1.1258 lows today, before pulling back higher. It is trading around 1.1293 for now and should be looking to stay below yesterday's high at 1.1345, going forward. Structurally, EURO has dropped from 1.1345 through 1.1258, in 3 waves until now. We need to wait for an 5 wave drop to confirm a bearish reversal. Overall, wave counts are suggesting...