Gold’s technical analysis shows last week’s rally pivoted near an important level. The bearish price action since hints at more losses for gold.
The video above is a recording of a US Opening Bell webinar from January 13, 2020. In this session, we covered the Elliott wave patterns for markets such as gold, silver, DXY, EUR/USD, GBP/USD, and USD/JPY.
Gold’s price reversal may be the beginning steps of larger correction
In last week’s webinar, we highlighted how the new highs in gold may be short lived. Gold prices may a large weekly reversal candle last week on the heels of the forecast. Reviewing an intraday gold price chart shows an Elliott wave impulse carving from the January 7 highs. This pattern suggests we may see a partial retracement higher that holds below $1611 followed by another sell-off that may carry to below $1500. Perhaps $1567-$1584 contains the corrective rally.
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EUR/USD Elliott Wave Analysis: Reversal Zone
Around the 1.1100 price level on EURUSD is a cluster of wave relationships. EURUSD price bounced higher from a low at 1.1091 on January 10. The subsequent rally has briefly broken the blue resistance trend line. This is a subtle indication the mood of the market may be changing from lower to higher.
The current Elliott wave count I am following is that EURUSD would accelerate higher in an extended wave iii. If this forecast holds, then EURUSD may rally up to 1.15 and possibly 1.18 with even higher levels possible according to Elliott Wave Theory.
Higher prices are still in view with EURUSD while holding above 1.0880 longer-term.
GBPUSD may revisit 1.29 prior to staging another rally
Cable appears to be retreating lower in corrective fashion. The sell-off since December 2019 is taking the shape of an a-b-c Elliott wave zigzag pattern. According to this pattern, the higher probability move is a retest to 1.25-1.29 prior to another rally that likely exceeds 1.35. The height and Elliott wave structure of the ensuing rally helps us determine if the rally is terminal and simply a small bounce or the beginning stages of a multi-year bull run.
---Written by Jeremy Wagner, CEWA-M
Jeremy Wagner is a Certified Elliott Wave Analyst with a Master’s designation. Jeremy provides Elliott Wave analysis on key markets as well as Elliott Wave educational resources. Read more of Jeremy’s Elliott Wave reports via his bio page.
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