There is a whole lot going on across the markets after today’s trade! And a lot of opportunities developing in the charts. So let’s not waste time chatting,
and get right into it!
UPCOMING RISK EVENTS:
USD: Revised UoM Consumer Sentiment.
EUR: German Retail Sales m/m.
GBP: BOE Gov Carney Speaks, Construction PMI, Prime Minister May Speaks.
JPY: n/a.
EUR/USD
30 min
4 Hours
Daily
My Bias: long-term bearish
Wave Structure: Topping in wave [B] black.
Long-term wave count: lower in wave [C] black.
EUR/USD reached into the support band below 1.2205 today. The price seems to have found a bid in that range as we can see a pop higher off the lows.
Wave ‘a’ of (ii) brown may now be underway and should trace out three waves. The 50% retracement level lies at 1.2356, so this is the initial target for wave (ii) 1.2155 must now hold.
It is now time to look for a complete bearish Elliot wave signal off the high in wave (ii) brown. Once wave (ii) is complete, the price structure should off a low-risk opportunity on the short side.
GBP/USD
30 min
4 Hours
Daily
My Bias: short below parity in wave (5).
Wave Structure: completing wave (4) blue correction higher.
Long-term wave count: decline in wave (5) blue, below parity
Cable broke support at 1.3763 which is the low of the previous wave ‘a’ pink. This is the minimum expectation for wave ‘c’ of the larger double combination wave (iv) brown. The price has already filled the smaller trend channel and completed a three wave structure in wave ‘c’ pink.
Further support lies at 1.3625, so I expect a bottom to form within this band.
Tomorrow;
Watch for signs of a turn higher in wave (v) brown. A break above 1.3856 will signal that wave (v) has begun.
USD/JPY
30 min
4 Hours
Daily
