Elliott Wave Analysis indicates that USDJPY is trying to stay with a larger uptrend now after recent reversal down to 95.50 support which appears to be wave iv).
GBPUSD is in sharp uptrend for the past two days, which was expected from a Elliott Wave Analysis after five waves down in red wave 5) of (3) followed by a broken trend-line. Well, current rally has an impulsive structure which means that leg is part of a larger recovery which will probably prove corrective as we are tracking a blue wave (4) pull-back.
AUDUSD Is Sideways But Still Bullish Within Larger Trend
Pair has reached 1.0375/1.0400 zone last week that we have been focusing on for some time with our clients, but based on the latest wave structure we could see even higher levels on this pair
S&P 500 Remains Bullish After A Corrective Retracement To 1537
S&P500 cash market gapped lower in this week, exactly after prices tested 1560-1570 resistance area for wave (iii) as highlighted several times to our members last week
EURUSD Could Find a Low When S&P Completes a Downward Correction
Markets are back in the range and trading sideways now after a reversal lower yesterday on US stocks. The S&P500 cash market moved close to 1538 support which of-course also pulled down the others as well, such as DAX and even NIKKEI futures. Meanwhile, we still have unresolved situation on EURUSD, where both counts from yesterday are still valid. 1.2880 remains key level for a push down to 1.2810. But as already noted few times this week; we think that sooner or later EUR will recover.
EURUSD
The S&P futures moved down to 1534 which now could be trading in wave C of an incomplete corrective retracement from 1558 high. If we get a bounce from 1526 support on S&P then EURUSD should find the bid as well because the correlation is tight on the intra-day basis, as shown on the overlay chart below.
S&P Futures count
S&P vs EURUSD
Generally speaking, we think that risk-on will resume, but probably next week once S&P bottoms, when also some new opportunities for USD shorts could occur.
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