Gold had rallied through $1763 yesterday, before reversing lower again. The yellow metal is trading around $1751/52 as we prepare this article and is expected to drop further as long as $1765 remains intact. Immediate support on smaller time frames id $1740 and $1720 respectively, and a break lower would add further confidence on the bearish setup.
EURUSD wave structure continues to remain bullish as it carves a potential higher low around 1.1167 levels. Bulls would be looking to push towards 1.1500 resistance to confirm a long term trend reversal. EURUSD trades above 1.1200 handle as we prepare the article but we still need to see a break above 1.1250 to confirm a bottom at 1.1167.
SPX500 might have carved a meaningful lower top around 3230 handle over the last week. The indice had reversed sharply since then, closing the week lower by almost 6%. It is now expected to stay below 3230 levels, and continue lower towards 2200, going forward.
USDJPY might be preparing to complete its counter trend rally by pushing higher towards 108.50 levels before giving in to bears again. A sharp rally still remains probable as long as USDJPY stays above 106.50, going forward.
GBPUSD seems to be progressing within Wave 5, towards 1.2900 and 1.3200 respectively. Bulls are expected to remain in control for now and prices are expected to stay above 1.2300 handle in the short term. A break above 1.3200 and 1.3500 would also confirm a long term trend reversal in GBPUSD.
Gold continues to trade in a tight range between $1700 and $1745 since last several trading sessions. The yellow metal is prone to further losses as long as prices stay below $1765 resistance. Only a break below $1660 would confirm with respect to price action, that Gold prices have reversed.
EURUSD bulls continue to remain in control as they are poised to push towards 1.1500 handle over the next few weeks. After a short pause over the last week, EURUSD is expected to bottom around 1.1180/1.1200 levels. Thereafter, the rally should resume towards 1.1500 levels.
SPX500 breaks its counter trend line since March 23 lows yesterday, dropping over 200 points. It has managed to close around the 3000 handle as seen on the chart and has entered the sell zone of the counter trend line. High probability remains for a major top in place at 3230.
USDJPY reversed just from 109.80/85, just below the marked resistance zone around 110.00 on the chart here. It might have carved a lower high around 109.85 and should remain in control of bears, going forward. A short term pullback rally can be expected towards 107.50/70 before the drop resumes towards 101.20
GBPUSD bulls remain in control and poised to push towards 1.2900, going forward. The long term structure is constructive for bulls as long as prices stay above 1.1414 support. Once prices break above 1.2900 handle, a 5 wave rally would be complete, indicating a trend reversal for the medium term at least.
Gold seems to have carved a meaningful top at $1765 handle, over the long term. The yellow metal has since carved lower lows and lower highs and is trading around $1695/96 as we prepare this article. In the short term, bears are targeting to break below $1660. This would confirm that the trend has reversed with respect to price action.
SPX500 continues to push higher instilling further confidence among participants that the trend is real and here to stay. Believe it or not, the objectivity offered through the Wave Principle will help us determine the next big move. We are preparing for a sharp bearish reversal in SPX500 against 3400 resistance.