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,
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
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