Aussie makes a very nice classic move - after breakdown it made a pullback (retest) and now it could drop
again to complete the entire correction and hit either 61.8% (.6956) or 78.6% (.6863) Fibonacci retracement levels.
That's why AUDNZD is in the red (see related)
This pair is breaking down support to complete the last leg withing a larger degree second leg of entire correction
before it will resume upside move.
1.03 area is the target where downside of the channel intersects with the 78.6% Fibonacci retracement level.
This pair has been trapped within a large complex correction between 1.38 and 1.20.
This move down started for the top could breakdown support soon to pass all the way down into 1.20 area to tag former valley.
Then another seesaw move before the final drop occurs.
Combination of valleys where the central one is lower than the left and the right troughs shapes the Inverse Head and Shoulders pattern.
Its a reversal pattern. Upside move should appear.
Watch Neckline to be broken for confirmation.
Target is equal to the depth of Head added to the Neckline breakout point.
A year ago I posted a chart (see related) with map of weakness for CLP.
This is daily chart to give you the map of the current impulse.
Wave 4 could have been completed now.
Wave 5 should at least tag former top of CLP 732.
The next target is CLP 764 where 5 = 100% of 1-3
DXY couldn't break below former valley of 95.03 and now we are heading to break the former top above 96.68.
This could make valid the unfolding of 5 waves up in larger wave (5) (green) to touch the big top of 103.82.
On a bigger time frames (see related) we can go even higher.
This pair was in a long running consolidation of wave B after a strong impulse up in wave A.
The wave B could have been finished already and we are heading north now.
The breakout above yellow resistance is needed.
Target is between 111.20 (C=0.618 of A) and 112.93 (C=A)
Usually traders miss the first leg of correction, but the second leg is our chance.
The wave X (yellow) unfolded as triple three WXYXZ (white) and there are all waves are completed.
We should wait for a breakout of yellow resistance.
target 1 (orange) = peak of former wave W = 163.50 = minimum target
target 2 (blue) = Y=W = 183.70 = most probable target
It looks like wave X unfolds as a triangle ABCDE.
Earlier I was waiting for the flat where eurusd could reach at least into 1.17 area.
But market couldn't raise its head so high.
The ultimate target for the whole retracement is located at 78.6% Fibonacci in the 1.08 area.
Price broke out of the consolidation first.
Now after first impulse up in the second leg there is a correction shaped a Falling Wedge pattern.
The pair breached higher and it could reach the 1.3340 area where second leg is equal to the first leg up.
The current upside move looks too large compared to the preceding downside move, which has been retraced lately.
In this case, one of the possible ways the waves would emerge is the triangular consolidation abcde white in wave (b) yellow.
The other option is that we already have bottomed in wave (b) at the point where I set the end of wave c of...
The price of oil is finishing the corrective structure (a-b-c)
with wave c completing a possible ending diagonal.
It could reach out to 50 area.
The wave c is already longer than wave a, therefore we will see another drop afterwards.
The minimum target for the anticipated drop is located at the earlier low at 42.34.
There will be no miracle. Less revenues from falling oil market will drag the index lower
as it should be around 800 already and could hit 530 when the oil would retest a multi-year low.
The correlation index for the past 12 months shows negative correlation but it is a temporary situation
as on the longer periods (20+ months) it is positive.
This will change...