Elliott Wave - Gold, Oil, Dollar Index

Gold Elliott Wave Analysis

The prices on the daily gold chart below are dancing around the upper trend line of a huge bearish channel, which should be acting as strong support in the future, if the market can make it through the $900 area. If we consider the Oil chart mentioned above then we can be almost sure that a move above $900 area will come if oil markets move up. The 100 day SMA area looks to be very strong support at the moment, at around $850.

Oil Elliott Wave Analysis

Prices bounced higher, seemingly following equities over the holiday period. The key for the move to test and hold the current $46 per barrel was the breakout point around $40 which is probably the signal for move at least to the wave 4 area, or even higher than $50. If we break the $50 area then the market could see a near-term dollar sell signal, especially with positive equities. This would confirm our wave count on Eur/Usd, Aud/Usd, Gbp/Usd and Usd/Jpy in the longer-term.

Dollar Index Elliott Wave Analysis

The Index is still trading below the significant 100 SMA area which could be strong enough to instigate short dollars and long euro's in the next few days. However, any break or move above the 100 SMA, and the black trend line will completely change the situation.  After the euro failed to hold the break higher in early trade question will now be asked as to how strong the dollar selling can actually be?

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.