Today we will cover a bit more on the index and EurUSD and Gold. Let's start by looking at the charts. First, let's look at EURUSD
EURUSD - Daily
I have devise out a systematic wave to write out my blog analysis.So I should start by using this template.
Resistance and Support:
R1= 1.301
R2=1.3116
S1=1.2820
S2=1.2670
Waveform:
On the daily chart, the pair seems to complete its 5 wave up on 17 oct and a obvious truncation had happened, this is inline with the divergence in RSI and MACD.Right now the formation of wave A is in progress and i am looking at
A. 1.2820 as a short term support
B. the support if breaks will head for 1.2742 which is 38.2% of the entire 5 wave up.
C.or 1.2576 which is 161.8% of the wave 5 up.
From this we should decide where is the most probable turning point for this wave down. We can zoom into the 4 hrs chart to take a closer peep.
EURUSD -4 Hr
I will not put those support and resistance lines here.
Waveform:
The waves are simply directly telling us it is a 5 wave down for the Wave A in daily that we saw. Thus, with that the target as you can see from the chart 5-A? will be turning at around 1.2797 region. This coincide with 161.8% of 4-A in this case. Look for bullish reversal candle stick as you can see from the indicator there are some buying force back..slowly.
Just another add on,looking at the USD index 4 hr chart it is forming a 5 wave up with some degree of divergence in the indicators. This adds up to the confidence that there might be a turn in Eurousd in the near term.
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