EUR/USD - We are still in blue wave 4, which is expected to be some kind of flat correction, however wave b of this correction have taken an alternate road, than first expected, but overall is changes nothing. We should still see a decline towards at least 1.2384 and likely close to 1.2286, before the last minor rally in wave c up close to 1.2627 to finish blue wave 4 and setting the stage for blue wave 5 down to 1.1897.
USD/JPY - We have seen the expected move into the resistance area between 79.15 - 79.50 with the high being 79.48 and ideally we should now see minor wave ii down into the 78.35 - 78.57 area before the next rally higher in wave iii.
One little alert should be mentioned according to minor wave ii, as it is the second wave of a possible new rally is may become deeper than the ideal target-area, it should still provide a low risk buying opportunity for the powerful wave iii with a stop just below 77.65, as second waves are not allowed to break below the starting point of wave i.
Dow Jones Industrial index (preferred count) - I have had to make a minor adjustment to my count from yesterday, but my preferred count still looks for a powerful move down in wave iii of 3. However the break above resistance at 12,258 does raise the caution-flag, which is why below you will find my alternate count.
Dow Jones Industrial index (alternate count) - This alternate count sees the decline from 13,338.66 as wave 1 and currently wave 2 is unfolding. Second waves ideally retraces between 50 - 61.8% of the first wave, which will leave us with a target-area between 12.686 - 12,840, but second waves are allowed to retrace up to 99.9% of the first wave.
A break above 12,611 will make this count the preferred count.
Gold - Most likely ended just 6 small pips below my ideal target at 1,646 (the high has been 1,640). I'm looking for a break below 1,614.80 towards the 1,608.70 - 1,609.72 area as the first minor wave down in a new impulsive decline that will challenge important support at 1,521. A break below 1,521 will call for a powerful decline towards the 864 - 1,005 area, with 864 being the ideal target.
Only a break above 1,677 will tune focus towards the upside again.
I am looking forward to your update on the DOW after today's end of day selloff, well off the highs of the day, but positive 2 days in a row.
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