Look beyond ordinary analysis
This week was a real master class in whip-saw action in EURUSD.
At the beginning of the week I put out the following chart and I said “There is a definite possibility that wave 2 is near completion now, with the first serious resistance at the previous wave (D) of the long term triangle at 1.0850”
This weeks high came in at 1.0873!
And since that high we have seen very bearish price action develop which I am monitoring closely.
The coming week could see the completion of a high probability wave pattern which has been in the making for the last 20 months.
And, If the short term wave count is correct, the coming few weeks will mark the end of an era for this market, and quite possibly the beginning of the end for the EURO project in general!
But that is getting ahead of the game a bit! lets deal with next week first.
Cable is at a very interesting point in the wave count, and the action over the next few days, is likely to set the direction for the trend in this market in long term.
Over the week I have been following a possible corrective pattern in GBPUSD which has reached a pivotal point in the price structure.
This market is hanging on to its bullish wave count by a thread, what happens early this week will decide the larger degree wave count. I will be watching this one very closely over the coming days.
As the week went on we saw USDJPY pull out one last rally as if from nowhere!
But the short term price action is completing a structure right now which calls for some trouble ahead for the bulls in this market.
Just as no tree will ever grow to touch the sky, no price will rally uninterrupted forever!
The DOW put in another impressive week, with each new day bringing a new all time high.
These new all time highs might have the bulls smiling from ear to ear, but the wave count is hinting at something completely different.
There are two equally likely scenarios playing out in the DOW right now, one calls for a continuing bull run to complete a larger five wave structure, but the alternate wave count calls for the rally to end very soon.
But, the important thing is, that both wave counts are long term very bearish!
There is a definite line in the sand where the alternate wave count becomes the preferred wave count. And when the price drops below this point, it will call a halt to one of the greatest bull markets in stock market history.
The gold market is showing some early signs of life right now, and if the short term wave count is correct we will see that life reflected in the price soon enough.
Each new day this market shows signs of an exhausted correction and slowing downside momentum.
The price action signal I am waiting for will come soon enough, and our daily analysis will catch it when it does arrive.
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