Kiwi after making multi year highs last week, retraced and it seems like the higher low was established yesterday at 0.6820. NZDUSD moved sharply up after RBNZ Rate Statement. I am bullish on AUDUSD and NZDUSD in the midterm.
I have had to roll with the punches while fighting cable recently, corrections are notoriously hard to get a grip on with the whipsaw action that seems to happen.
But, the action we are witnessing is definitely, (as far as I can be sure! ) still a correction higher.
This means that what I have to do as a trader is to find the pattern, that describes the action best, as the correction proceeds.
Aussie had another very strong week. The pair printed another multi-year high.This could be a dangerous situation for the short term traders. Aussie is now trading within a major resistance and the top could be imminent. The pair, after climbing to 0.7830 area, pullback sharply in the recent session. The are few reasons to believe that Aussie is undertaking deeper correction from here
Last weekends Elliott Wave weekly update spoke about the ongoing contracting wedge formation in cable, I had been expecting a further rise to the 14400 handle to complete three movements in wave 'e' of the triangle.
Cable remains bearish. This was further confirmed by this week’s Commitments of Traders report. Speculators added over 7K more short positions to their portfolios. It has made another leg down and closed the week at 1.4120.
Today GBPUSD bounced off the support on the back of good CPI data.
I expect the pair to climb toward upper border of the trend line and sell off around 1.4300 area.
I will look for a reversal pattern on 15, 5 min charts before I enter short positions.
As indicated in last week's Weekly Chart Analysis the pair is within the major resistance zone, bears could look for the short reversal setup from the current levels.
My preference would be to look at the stochastic oscillator on daily charts and seek a daily engulfing candle. Please read Stochastic Oscillator guide to maximize your understanding of this indicator
Last weekends Elliott wave weekly picture spoke off an emerging opportunity in the DOW JONES, I was looking for a top in wave 'D' of a triangle.
This top offers a very attractive Shorting opportunity with a possible 1000 point move on the cards should my wave count prove correct.
I have been trying to pinpoint USDCAD long for some time now. It kept printing lower.
Looking at daily charts, USDCAD is sitting at a major support. The level marked at the chart below was pretty responsive in the past. Traders could use this opportunity to pile in orders around this level.
Cable was definitely another big loser last week. After reversing from the resistance at 1.45, it was printing lower prices almost every day last week. It had finished the week below 1.41.
Daily charts suggest that downtrend is intact and it’s reasonable to assume the double bottom might be formed at 1.3850 sometimes within the next 8 weeks.
Before this is the case, GBPUSD could see a correction to the upside from the current levels.
There is a major support at 1.41 (marked in yellow), which was very responsive in the past.
Daily stochastics suggest the reversal to the upside could take place in the short term.
Todays trading brought prices to meet the upper trend line of the primary wave '4' triangle, with this action we can say that wave 'd' up is possibly finished at todays high.
A triangle in Elliott wave terms should consist of 5 internal waves, and the DOW as labelled in the chart above, has completed 4 of the 5 waves. This offers a decent opportunity to trade the expected decline in wave 'e'. Wave 'e' is the first high confidence trade setup that a triangle offers as the trend line is firmly set with two previous lows and two previous highs in place.
Learn how an Elliott Wave Forex trader applies the theory to trading successfully and profitably. These are EXACT price patterns I used for years to steadily grow my trading account while taking minimum risk.