Daily Elliott Wave Analysis – 08-08-19 – Now for the main show!

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Hi there everyone.

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EURUSD

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EURUSD is well into wave (b) of [ii] this evening after a sideways trade today.
I have shown a possible triangle wave 'b' of (b) underway.
This should complete early tomorrow,
with wave 'c' of (b) left to complete a three wave correction in (b).
The we should get a further rally above resistance in wave (c).

Tomorrow;
Watch for a drop to about 1.1140 to complete wave 'c' of (b).
If we see a rally above 1.1250 again,
that will signal wave (c) has begun.

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GBPUSD

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I have shown another interpretation for wave [ii] tonight.
This involves a higher degree wedge in wave (a) up,
a three wave decline again in wave (b) and now wave (c) which should be underway.
Wave (c) should rally up to the initial resistance level at 1.2380 or so to complete wave [ii].

Tomorrow;
Watch for wave (c) to hold above 1.2077 and continue higher.
A break of 1.2214 will signal wave (c) has begun.

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USDJPY

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Todays trade has not revealed anything new so far.
It looks like we will not get a five wave rally this week to begin wave (i).
The price has created a very slight higher low today,
but we will have to wait and see how this develops over the coming days.

Tomorrow;
Watch for wave 'iii' of (i) to push higher overnight.
A break of 107.10 would be a good sign.

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DOW JONES INDUSTRIALS

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The price has risen in three waves off the recent extreme low so far.
This does suggest a correction is now complete.
The price has now hit the initial target for wave (iv) at 26300,
and the rally seems to have cooled off again.
So wave (v) could start as early as tomorrow.

I can still view this correction higher as either wave (iv) of [i],
or wave [ii] of overall.
Both wave counts should yield the same results in the short term.
That is a drop back below 25000 over the coming week.

Tomorrow;
A sharp decline tomorrow which falls back below 26000
should get wave (v) underway.

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GOLD

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Gold dropped off Wednesdays high in quite a corrective fashion today,
and we have a rally to a small double top this evening.
I have labelled this as wave 'a' and 'b' of 'ii' nearing completion this evening.
Wave 'c' down should follow tomorrow and carry the price back below 1489 at a minimum.
The 50% retracement of wave 'i' lies at 1455,
so that level should offer some support.

Tomorrow;
watch for wave 'c' of 'ii' to continue the decline.

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U.S CRUDE OIL

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Crude is higher today off the recent lows.
The rally has not traced out a complete three wave structure just yet.
So I think we will see a further rise tomorrow.
I have altered the wave count todays to reflect the larger three wave rally underway.
This could be wave 'i' and 'ii' of a larger wave (iii) ongoing.
If this is the case,
wave (iii) will extend much lower as shown.

The alternate count shows another variation of waves (i) and (ii).

Tomorrow;
Watch for wave 'ii' to continue higher to about 53.60 to complete.

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US 10 yr Treasuries.

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Bonds made a new low today and now the move off the high is a reasonable five wave structure.
I have labelled this as wave (i) down.
With wave (ii) now underway.
Wave (ii) should create a lower high in three waves below 130.86.
Then we can expect a decline into wave (iii) next week.
And that should carry the price back towards the recent triangle again at 127.50 or so.

Tomorrow;
watch for wave (ii) to trace out three waves up as shown.

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SILVER

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Silver has indeed corrected lower today in three waves.
I have shown a possible wave (a) now complete at the low of the session.
With waves (b) and (c) left to trace out over the coming days.

Give the relatively small size of wave (a),
it does add weight to the alternate count right now.
If the correction continues on this smaller scale tomorrow,
then I might switch to that interpretation tomorrow.

Tomorrow;
Watch for wave (b) to create a lower high below 17.23 tomorrow.

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S&P 500.

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The S&P has now traced out a three wave correction to a lower high this evening.
The action fits well into a trend channel,
and the price has reached the 62% retracement level of the recent decline.
We are approaching the end of wave [ii] now.
And alarm bells should start ringing soon,
for wave [iii] down is near at hand.

Tomorrow;
Watch for wave [ii] to close out tomorrow,
the price may even sell off as we have hit an extreme in short term momentum.
A sharp decline back below 2900 again will signal wave (i) of [iii] has begun.

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