Patterns Point to Bulls in DJIA, Crude Oil Prices and EUR/USD
This is a recording of a US Opening Bell webinar from June 5, 2017.
In today’s US Opening Bell webinar, we discussed technical patterns on key markets for this anticipated volatile week. Some key markets we analyzed include Dow Jones Industrial Average and how the pattern appears to be near a potential pivot point. Though DJIA tries for new highs, the pattern favors one more dip back towards 20,440.
EUR/USD continues to press higher. The technical pattern still looks incomplete to the upside. We favor buying dips in the pair back in the 1.10 handle in wave (iv) of iii prior to an eventual break higher towards 1.15-1.17 in the coming weeks.
GBP/USD has a potentially volatile week ahead as Britons head to the polls on Thursday June 8. We previously wrote about GBP/USD carving a 2017 top, but due to the election on Thursday, a spike higher is not out of the question. However, if GBP/USD does move higher, it may find some resistance near 1.32 or 1.34.
USD/CAD is a market where we favor a resumption of a longer term downtrend. The Elliott Wave model appears incomplete to the downside. This also suggests crude oil prices may be supported and may move sideways to higher over the coming weeks. $43.79 is the key level to watch for crude oil prices.
Lastly, going into today’s RBA announcement, AUD/USD is behaving as if it is supported. We have two patterns we are following one of which is that a bullish triangle just ended leading to higher prices. The other is a continuation of a flat pattern that may draw prices towards .71 - .72 prior to a move higher.
IG Client sentiment among EUR/USD traders continues to print near extreme levels at -2.4 and has been negative since mid-April. This suggests some continued strength in the pair may continue. Learn how to trade using sentiment data at the link above.
---Written by Jeremy Wagner, Head Trading Instructor, DailyFX EDU
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