Elliott Wave - EUR/USD, GOLD

Traders what a move yesterday on Aud/Usd, it dropped for more than 700 pips but it will be very hard to reach this number again, and unlikely that it will not happen so soon. So, aussy broke the support area, mentioned yesterday, very powerfully, but the prices are already trading higher as we saw a bounce from 0.7000, which was the low of wave C) of the triangle in the forth wave. Check out the yesterday chart.

Euro has also moved lower as Oil was down below $88 per barrel. Oil is currently trading at critical support areas from 22nd of January 2008, there may be a technical bounce higher from here.

Today's Charts

EUR/USD

Yesterday we mentioned the possible low on the euro at 1.3549, and whether the black wave v would be equal in distance of the 355 pips. The market pushed the euro a little bit lower while the dollar was stronger also against the other currencies. The prices hit the support area at the 50% projection levels, which was the next target after the 1.3549. If we look on the wave counts now, then we can say that the black wave v of the blue III should be completed with the prices at the yearly lows. Especially if we consider the fact that prices tested the lows around 50% several times on Monday and then bounced back up quite strongly. If we are correct about this one, then the next step should be the break through the upper side of the channel which move could the wave a; the first wave of the possible zig-zag move which could be in process right now.  Traders should stay aside here and wait for more data. Also keep in mind the Mr. Bernanke speech which is on the list today.

GOLD

A week ago, we mentioned that possible long position could be the case in the 800 area on gold. The prices traded only down to 818 low, which now looks like the bottom of wave c of the blue wave II. Yesterday we saw very powerful bounce on the upside, and it looks like the traders have a lot more confidence in the gold right now, then in any other equity or commodity. If we check out the price structure from yesterday, then we can say that is looking like a small impulse on the upside. It looks like the market could be trading on the fresh start of higher prices, which should follow in the next few days and weeks, if the wave II correction is really completed. The next upside targets are between 890-900 dollars, where traders could see a little pullback before the market will break to new highs again. 

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