Written by www.ew-forecast.com |
Most of the markets are reversing from their yesterday extremes that occurred after a Sunday gap. As we know open gaps usually get filled, which seems to be unfolding on majors right now.
On EURUSD we noted yesterday that reversal point could be near because of five wave movement from 1.3250. Well, we can see nice move down through wave four support which means that five wave rally is done and that market should make minimum three waves of a pull-back, ideally back to 1.3290. Any scalps on the short side of the market should have stops above 1.3384 invalidation level.
GOLD reached new low yesterday around 1302, but notice that decline from 1335 was made in three waves, which is a corrective structure. As such, we think that’s wave b) that is part of a complex incomplete wave (iv) pattern. Based on latest price data we know that wave (iv) can be flat or a triangle. Flat has a resistance around 1338, while for a triangle count market must remain sideways as we need few more legs for complete. But interesting is that both structures are corrective which means that sooner or later new lows should be seen.
GOLD count #1
GOLD count #2
Written by www.ew-forecast.com
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