Elliott wave analysis of EUR/USD and Gold

EUR/USD

 

With the clear break above resistance at 1.3300 we are headed towards my first target at 1.3491, but I will not be surprised to see a continuation higher towards the next target at 1.3833.

Not only will wave C be equal in length to wave A at 1.3833, but it also marke the 61.8% retracement target of the decline from 1.4940 down to 1.2042. That said, we must be aware of the possibility for a continuation higher towards the triangle resistance-line. Time will show how high we will go.

 



Gold

 

It has been quite a while since I have last written about gold, but I do think there is a very good chance, that we have seen the bottom of wave ii of 5 at 1,625.94 and wave iii is under way higher towards 1,998.05. To confirm the rally higher we first of all need a break above 1,712.35 and more importantly a break above 1,754.31, which confirms a new test of strong resistance at 1,795.90. If resistance at 1,795.90 is broken we will likely see a powerful rise towards the target at 1,998.05.

Elliott wave analysis of EUR/USD and Gold

 EUR/USD

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.

Gold

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.

Elliott wave analysis of EUR/USD and Gold

 EUR/USD

Did blue wave 4 end with the test of 1.2877? I think there is a very good chance that this is the case. It's not uncommon that wave 4 will correct towards wave iv of one lessor degree, which in this case meant a correction to 1.2880. The minor rally since the 1.2877 low does look impulsive and I would be looking for a break above 1.3075 as the next clue, that we are moving higher towards 1.3290 and possibly even towards 1.3491.

Gold

I think there is a very good chance, that we are ready to take on important resistance in the 1,795 - 1,803 area again. The first clues will be a break above 1,734 and more importantly a break above 1,754, which will confirm a test of important resistance at the 1,795 - 1,803 area. That said we need a break above here to really release the impulsive power for the next move higher towards 2,158.84 and possibly even 2,550.59 and 3,184.70.