Wednesday, December 19, 2012
Elliott wave analysis of EUR/USD and Gold
As it can be seen, on the chart above, the bearish channel clearly has been broken, which add confidence in my call for a continuation higher towards 1.3491 and likely even to the 1.3778 - 1.3833 area in wave c of E. C-waves resemble third waves in wave personality and can quite relentless in there moves. I think the ideal target for this wave c is at 1.3778, where wave c will be equal in length to wave a. The form resistance at 1.3172 has now shifted to become support, but even a slight break below 1.3172 will not alter my bullish call.
We are at important support in form of the channel support-line. This support should ideally protect the downside for the next rally higher, but it will take a break below 1,629.50 to invalidate my bullish bias to a more neutral outlook and call for a new test of the very strong support near 1,528.00. However to really get things going here we need either a break below support at 1,528.00 or a break above resistance at 1,796.00 until the break I will maintain a more or less neutral bias. Longer term I'm still bullish for one last rally to new all time highs.