Last Time This Happened in EURUSD was 1 Year Ago...

EURUSD sentiment has closed the day positive for the first time since April 2017. This, coupled with our Elliott Wave analysis is a longer-term bearish signal for EURUSD. In April 2017, EURUSD was trading near 1.06. IG client sentiment then flipped from positive to negative and remained negative until Monday’s daily close as sentiment is currently sitting at +1.05. Sentiment is a contrarian tool so this flip to positive is actually a negative signal for the EURUSD exchange rate. In hindsight, sentiment flipped from positive to negative in April 2017 and we say EURUSD rally over 1500 pips. Will this flip in sentiment create a similar bearish trend? Time will tell. This flip does not mean that we blindly go out and sell EURUSD, but it does indicate the EURUSD trend may be shifting. EURUSD Elliott Wave Analysis Our bias for EURUSD has been bearish for a couple of months now with a small probe in the market according to our April 9 Elliott Wave analysis. “If a trader is unwilling to wait for a more conservative entry at the 1.2153 break out level, then they could consider a shortArticle source:...

Bullish Elliott Wave Pattern Pulls US Dollar Index to 3 Month High...

US Dollar Index advances in a bullish Elliott Wave sequence as large speculators are the most net short in four years. US Dollar Index Elliott Wave Analysis DXY has quietly been making gains since early April. Using the Elliott Wave principle, it appears we are now in a third wave impulse higher. The Elliott Wave count we are following is that DXY is in the beginning stages of an extended third wave. We anticipate that this wave will carry higher up to at least 93 over the next several weeks. This aligns with our previous forecast of the US Dollar staging its largest rally since January 2017. Ultimately, this rally may carry back towards the 95 zone before finding meaningful resistance. Risk to the near term bullish scenario can be set at 89.23. So long as DXY is above 89.23, we are anticipating prices to carry higher towards 93 and possibly higher. In viewing the COT report, large speculators are the most net shortArticle source:...

USDJPY Chart Analysis: A Bullish Short Term Elliott Wave Pattern...

The Elliott Wave chart pattern for USDJPY appears to have carved an impulse to start a new trend. After a minor dip, we are anticipating another push higher towards 108. We have been tracking a pattern on the USDJPY chart that suggests a meaningful low forming in the 103-105 vicinity. The March 25 low did reach 104.63 so the higher probability move is towards higher levels. In Monday’s US Opening Bell webinar, we highlighted the possibility of USDJPY reaching 106.50 to 108 resulting from hitting channel support. Since then, USDJPY as ascended to 107.01 so what is next for the market? Using Elliott Wave Theory, we can count a five-wave impulse forming from the 104.63 low. Within this impulse, the fifth wave appears extended. As a result, it would be normal for USDJPY to experience a pull back towards 105.30 to 105.80. At that point, we would look for symptoms of a bullish reversal that may press higher towards 108. How did Elliott Wave Theory help us identify the reversal zone on USDJPY Chart? A couple wave relationships appear in thisArticle source:...

Elliott Wave Forecast for Gold, Silver, and Yen Paint Bullish USD Picture...

Gold prices continue to press near four-year highs at $1366 while silver prices are unable to rally. The Elliott Wave analysis along with this divergence in price behavior suggests a bearish reversal may occur near current levels. Gold’s Elliott Wave chart in a large complex ‘B’ wave We are switching over to a line chart to help us determine waves according to Elliott Wave Theory. The rally in gold prices from December 2016 appears in corrective form and is therefore likely to be completely retraced at some point into the future. The near term Elliott Wave analysis shows gold prices are in a complex ‘B’ wave. These types of waves are difficult to forecast. As a trader, you are better off waiting for the top to print, and then wait for levels of support to break prior to entering into trades. We can use the January 4 low of $1305.77 as the support level to monitor. A break below $1305 adds to the argument that the complex ‘B’ wave has topped. If this Elliott Wave count is correct, then we can forecast a drop in gold prices down towards $1200 in a ‘C’ wave. Though lower inArticle source:...

EUR/USD Elliott Wave Analysis: 3 Ending Waves Meet a 10 Year Trend Line...

EUR/USD Elliott Wave Analysis Talking Points: EURUSD is very close to completing a three year Elliott Wave expanded flat pattern The final wave is taking shape with some targets near the 10 year trend at 1.26 A bearish reversal has an initial target of 1.15 with a secondary zone 1.09-1.12 EUR/USD Elliott Wave analysis shows a three year expanded flat pattern very close to being completed. New highs above 1.26 may be short lived as a large bearish reversal hovers nearby. Elliott Wave Flat Pattern Began in 2015 EUR/USD has been correcting sideways since March of 2015 as an A-B-C wave. This three-wave move is shaped as an expanded flat pattern. According to the Elliott Wave principle, the ‘C’ wave of the flat would need to carve in five waves and it is the terminal wave of the larger pattern. We can see from the chart below that the pattern is nearly complete as the fifth and final wave is advanced in length. Elliott Wave Theory 5th Wave of a 5th Wave underfoot One benefit of reading the charts using Elliott WaveArticle source:...

Crude Oil and Natural Gas Approach Longer Term Pivot Levels...

Elliott Wave Talking Points: Weekly Crude oil chart shows price near a common reversal point Anticipating a bearish reversal to retrace a significant portion of the 2016-2018 up trend Bonus chart of a Natural Gas forecast as a meaningful low may be forming soon The crude oil Elliott Wave analysis on the weekly price chart shows a bearish pivot may be occurring near current levels to retrace a significant portion of the previous uptrend. Nat Gas prices may be approaching a significant bullish turning point too. Within an Elliott Wave impulse wave, many times the fourth wave will retrace to the price extreme of the previous fourth wave at smaller degree of trend. For crude oil, the previous fourth wave was June 2015 near $62. Crude has temporarily popped above this level suggesting that current uptrend is mature in both time and price (see the green arrows on the weekly chart below). We can also anticipate a termination point in the fourth wave of an impulse by drawing a trend line connecting the end of waves one and three. Then, duplicate that line and place it at the end of wave two of that impulse. Many times, the fourthArticle source:...