EUR/USD - The correction since the 1.2640 low is still ongoing and we could see a test of 1.2852, before green wave iv is done a the next decline in green wave v sets in for a decline towards 1.2855.
USD/JPY - Is set to break above critical resistance at 79.45 and a close above here will be the first indication that we have seen a bottom at 78.96. However we need a break above 80.55 to confirm the bottom and that a new impulsive wave 3 rally is under way.
VIX Index - Closed inside the Bollinger Band, which indicates that a correction towards support near 20.00 is under way, however after the minor correction a new rally above 24.44 should be seen towards at least 26.86 and more likely 30.91.
Dow Jones Industrial - Wave 1 or A ended at 12.337 and we should now see a correction in wave 2 or B towards the 12,837 - 13,049 area before the next decline in wave 3 or C down sets in.
Tell us something about EUR/JPY? If this decline accepting it for wave 2 isn't it too deep?
ReplyDeleteHi Diversanta,
ReplyDeleteWave 2 is allowed to correct up to 99.9% of wave 1. The only rule is that wave 2 does not decline beyond the starting point of wave 1.
So the current decline in wave 2 in EUR/JPY is totally acceptable, but we are close to the bottom now.
I will update EUR/JPY and CHF/JPY in the next post.
Regards
EWS
Thanks for the link on the short term DJI. Your targets were never hit since May 22, do you still see the possibility of what you call a correction in Wave 2 or B to 12,800-13,000? Or did the drop below the 200dma negate your count? I am looking for a very oversold bounce off this last round of seeing propelled by bad news, in line with your correction prediction dating back to May 22.
ReplyDelete