SPX500 has reversed as expected from yesterday’s high around 3180 levels. Make no mistake of taking the pullback at the close as the drop is complete. The indice has just begun on the south side and it has a long way to go, with initial target towards 2700/2800.
USDJPY continues to drift sideways and has tested its lower range around 107.30 mark. A sharp rally towards 108.30/40 still cannot be ruled out before bears are back in control. A break above 107.80 would encourage further push towards 108.30 zone before finding resistance.
GBPUSD might have carved a lower high around 1.2600 levels yesterday and could be preparing to turn lower again. The currency should be back in control of bears from here on, and continue lower towards 1.1900/1.2000, before resuming its rally.
Gold has been probing resistance around $1790 since yesterday. The yellow metal is trading around $1785 levels as we prepare to publish this article, and bears might be inclined to break below $1750 interim support, going forward.
EURUSD might have carved a meaningful top around 1.1420 levels, and the structure might be turning bearish in the short term. The currency pair is seen to be trading around 1.1280 levels as we prepare this article, and might find resistance around 1.1300 handle, going forward.
SPX500 might be looking ready to take the next plunge lower towards 2200 in the next few weeks’ time. Bears are looking poised to be back in control as the indice hits 3165 highs yesterday. This counter trend rally was expected and we are not surprised it unfolded.
USDJPY had managed to rally past 108.00 handle before pulling back yesterday. We cannot rule out another push through 108.30 levels, before giving in to bears again. The Japanese Yen is expected to remain strong until 109.85 resistance is intact, going forward.
GBPUSD might have entered a corrective phase towards 1.1900, before the rally could resume. The drop from 1.2810 has sub-divided into 5 waves towards 1.2260 lows, before pulling back yesterday. The rally could extend towards 1.2500/30 levels before finding resistance.
Gold need to stay below $1780, and break the immediate support around $1670 to confirm a bearish reversal. It is nobody’s guess when it is going to happen but with respect to the probabilities, it is good to prepare to sell on rallies from here, rather than buying the dip.
EURUSD might be preparing to change its medium term wave structure after printing highs at 1.1422 over the last week. A break below 1.1167 would confirm that EURUSD might be turning bearish, going forward.
USDJPY has produced an impressive rally by over a 100 pips yesterday. The currency is seen to be trading above 107.00 handle as we prepare this article and high probability remains for yet another high above 107.15 before correcting lower again.
GBPUSD seems to have carved an interim low around 1.2335 early this week. The currency has since rallied through 1.2540 and looking poised to extend further. Ideally, bulls remain in control and GBPUSD should reach 1.2900, 1.3200 and 1.3500 handles going forward.