Also, we still see strong resistance on US stocks based on the situation in Ukraine, so any upward levels may not be taken out so easily. In fact, we think that SP500 has room for 4k, so USD can see even more upside vs other currencies.
GOLD(XAUUSD) Elliott Wave Analysis
Gold came sharply to the upside as a “safe haven” asset based on the latest events in Ukraine. Higher inflation is also one of the reasons for higher metals, however the FED may try to limit the strength this week if the rate hike will be above expectations.
We have seen Gold coming above 1916, so this can be a break towards a new ATH. In the short term, however, we should be aware of an even deeper pullback as we see the price coming down from the highs with one leg. Currently, the broken trend line support from 1880 area can make a room for a retracement back to 1900-1880 area.
Silver(XAGUSD) Elliott Wave Analysis
Silver is coming down in the 4-hour chart after we noticed five waves up, so with broken channel support line, seems like it’s slowing down now within a higher degree A)-B)-C) correction, where first support could be at the former wave 4) and 23.80 level. Any bigger decline back below 22 region would be a serious signal that bears are back in the game.
For a look at all of today’s economic events, check out our economic calendar.