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.
last nights low reached the lower trendline once more at 110.62.
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 an solid two weeks of selling, it is time to see a reversal higher.
I will be watching this evenings rally to see if it develops into a five wave form to the upside.
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 hovering around the resistance/support level at 1254.63.
Todays high reached 1258.75,
This is a solid break of resistance and adds weight to the bullish case from here.
Now that we have a clear five wave pattern in place off the low,
And the upper trendline is within spitting distance!
It is likely that wave 'i' brown is complete.
The next move to expect is a three wave selloff in wave 'ii brown,
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.
I will be watching for the beginning of a three wave decline in wave 'ii' brown.