Elliott Wave Outlook for GOLD and USD/JPY
My Bias: Long towards 1550
Wave Structure: ZigZag correction to the upside.
Long term wave count: Topping in wave (B) at 1550
Important risk events: USD: CB Consumer Confidence.
Gold has spent the days to hover around the resistance/support level at 1254.63.
Today’s high reached 1258.75 which is a solid break of resistance and adds weight to the bullish case from here.
It is likely that wave ‘i’ brown is complete. The next move to expect is a three wave selloff in wave ‘ii brown,
The 50% retracement level lies at 1231.79, and the 61.8% retracement level lies at 1225.46. This is also the high of wave ‘1’ pink which adds further support.
1225 has acted as a point of oscillation for the price over the last 6 months.
This level should act as major support as wave [iii] green develops in the coming weeks.
My Bias: LONG
Wave Structure: rally in wave [C]
Long term wave count: wave [C] is underway, upside to above 136.00
Important risk events: JPY: N/A. USD: CB Consumer Confidence.
USDJPY rose off a new overnight low today.
There is now a clear five wave pattern in wave ‘c’ pink, this should complete the decline according to this wave count.
The action to look for now is five wave rally with a corrective decline to kick off wave (iii) green.
The price has now reached the 62% retracement level and the previous wave ‘ii’ brown. After solid two weeks of selling, it is time to see a reversal higher.
Watching this evenings rally to see if it develops into a five wave form to the upside.
This post was originally published by Bullwaves