GBP/USD Hits New Post-Brexit High As Dollar Extends Drop

Fawad Razaqzada

The big news today is that the dollar’s losses have sharply accelerated, but without any fresh news. The economic calendar is light and US stock markets will be closed in observance of Martin Luther King Day. This hasn’t stopped the Dow futures from melting up another 140 points. It goes to show that in low-volume days like today, it is even harder to resist against a strong trend. The markets simply drift in the trend direction as resting stop orders above (in the case of stock indices) or below the market (in the case of the dollar), attract prices towards them. In dollar’s slipstream, the GBP/USD has hit a new post-Brexit high of more…

DAX: Correction In Progress

Daud Bhatti

DAX Short Term Elliott Wave view suggests that Intermediate wave (X) ended at 12731.46. Rally from there is unfolding as a 5 waves impulsive Elliott Wave structure where Minutte wave (i) ended at 12943, Minutte wave (ii) ended at 12881.5, Minutte wave (iii) ended at 13408.5, Minutte wave (iv) ended at 13328.5, and Minutte wave (v) of ((a)) is proposed complete at 13421.5. Index is correcting cycle from 1/2/2018 low within Minute wave ((b)) in 3, 7, or 11 swing before the rally resumes. more…

EURUSD Short Term Rally Opportunity

Peter Adamson

I was waiting for EURUSD to rally yesterday, and this morning I missed it! Silly me. But it is correcting now, so I think there may be a chance to get in.

Remember what Gann taught us about the safest point of entry: the first higher bottom. If you observe the hourly chart you will see that the trend has reversed to the upside. We now have a range from 1.1916 at 13:00 on 9 January to 1.2018 at 12:00 today. Notice the interval is very close to 24 hours. Naturally we will be looking for support at the fib levels between these two prices: more…

USD/JPY Triple Bottom Pattern Consolidation Breakout

Nenad Kerkez

As the BoJ commences a slow process of tapering, this in theory has pushed traders into buying JPY. We already saw it in my previous GBP/JPY analysis. In addition, this has the side-effect of selling risky assets, and we saw Equities pullback from recent highs in alignment with rising JPY demand. Whilst US data has been mixed, with Consumer Credit rising, but lower JOLTS jobs openings, all eyes will be on US CPI and Retail Sales data later on Friday. more…

Crude: Rallying Oil Prices May Top Out Soon

Fawad Razaqzada

Overnight saw the price of WTI crude hit its best level since May 2015, before falling back a little. Oil prices have hit the ground running at the start of this year, continuing their recovery from the middle of 2017, as global crude stockpiles fell from record high levels and due to good compliance with the production cuts by OPEC and Russia. Given that the production agreement has been extended to the end of 2018 at the OPEC’s last meeting, the market clearly expects crude inventory levels to drop further. But with the OPEC set to review the duration of oil output cuts based on fundamentals at its next meeting in June, there is a possibility they could end the agreement sooner than expected. What’s more, oil prices are now at levels more…

Nasdaq Ended Correction

Daud Bhatti

Elliott Wave view for Nasdaq suggests that the Index has ended the correction to the cycle from 12/5 low at 6383.25 and from there it it has started the next leg higher. Up from Intermediate wave (4) low on 12/5, the rally unfolded as a double three Elliott Wave structure where Minor wave W ended at 6545.75 and Minor wave X is proposed complete at 6383.25. However, for this view to gain validity, the Index needs to break above Minor wave W at 6545.75. more…

EUR/USD Buying The Dip Continues During Holidays

Nenad Kerkez

The EUR/USD has been bought on the dip that formed the right shoulder of the bullish SHS pattern also known as – Inverted Head and Shoulders. Holiday trading is always risky due to low liquidity, and lower liquidity might in turn, produce higher volatility. But at this point, the trading has been a bit quiet. The ATR for the last 14 days is only 62 pips, and the EUR/USD has made 29 by the time of writing this analysis. As long as the EUR/USD is kept above 1.1835 targets are 1.1890. 1.1905 and 1.1950. Have in mind the ATR projection high is 1.1917, so the pair needs to break above 1.1917 with a stronger momentum to reach the W H4 resistance. If it manages to touch and stay above 1.1906, 1.1950 could be achieved by the end of the week providing we don’t see any profit taking on long trades. more…

SPX Bullish Sequence

Daud Bhatti

SPX Short term Elliott Wave view suggests that the rally to 2664.58 ended Minor wave 1 as a Leading diagonal. Below from there Minor wave 2 ended as a zigzag correction at 2624.19 low, above from there Minor wave 3 remains in progress as a double structure. And showing the incomplete bullish sequence to the upside. The Minutte wave (a) of ((w)) ended in 5 waves at 2671.92 high. Where internals of that leg Subminutte wave i ended at 2633.72, Subminutte wave ii ended at 2626.32 low, Subminutte wave iii ended at 2669.68. Subminutte wave iv ended at 2663.68 and Subminutte wave v of (a) ended at 2671.92. Below from there, it ended the Minutte wave (b) 2651.78 low, above from there Minutte wave (c) of ((w)) ended in another 5 waves at 2695.38 peak and also ended the cycle from 12/06 low 2624.19 there. more…

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