Elliott Wave - GOLD, EUR/USD

Usd/Jpy traded lower yesterday as the market bounced exactly from the 38.2% Fibonacci pullback area. It was quite an interesting breakdown, while the equity markets have been also trading lower. We also saw the positive correlation with the Eur/Usd, and at the same time in the Eur/Jpy, where the case of a very weak euro and a strong yen  has the prices already down at 134.00 level. Gold moved higher yesterday, just at the end of the New York session prices tested the 38.2% retracement levels several times before they exploded higher.

Today's Charts

GOLD

On the four hour chart below, we can see that the prices have already completed the correction movement in wave ii), discussed yesterday. On yesterdays gold chart we covered the possible turning point between $865 and $880. The low was $881,  just one dollar away. The turning point however has been reached and the prices are trading higher, with the new move above $900. The market have already pushed the prices to new highs; above the wave i), which means that stronger moves should follow if we consider the fact that usually the strongest moves appears in wave three. The next target is at $955 at the daily trend-line resistance. These targets will be valid as long the market trades above the lower support line of the red bull channel. 

EUR/USD

We are also back with the two hour updated time frame chart on the euro, after the market completed the correction in blue wave IV. The prices are already continuing lower to approach the wave V targets of the red wave C. The downside target could be between 1.3250-1.3350, where we have some Fibonacci projections and extensions levels, which should be strong support areas in the future. The first strong resistance at the upside is shown at the corner of the upper channel line, and lower line of the wave IV correction. Traders should be also watching the prices for the possible break to the upside direction next week if oil moves back through $80, out of the bear channel. If this is the case, then it is definitely better to stay aside.

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