2018-12-20
EUR/JPY continue to consolidate , but it should be a matter of time before short-term important support at 127.70 is broken for real and a continuation lower in wave C towards the long-term ideal target at 123.66 is seen.
Short-ter resistance is now seen in the 128.38 - 128.56 area, which should continue to cap the upside for the expected break lower.
R3: 129.26
R2: 128.56
R1: 128.22
Pivot: 128.00
S1: 127.70
S2: 127.20
S3: 126.63
Trading recommendation:
We are short EUR from 128.05 with our stop placed at 128.65.
Elliott wave analysis of EUR/NZD for December 20, 2018
2018-12-20
The decline from 1.6728 failed to break below short-term important support at 1.6532 and the following rally above the prior peak at 1.6728 confirmed a more complex correction developing in wave iv and a move closer to the 38.2% corrective target at 1.6921. This corrective target is now being tested and wave iv could complete anytime now for renewed downside pressure. To confirm wave iv has completed a break below minor support at 1.6777 is needed and more importantly a break below support at 1.6532 that confirm wave iv has completed and wave v lower is developing.
R3: 1.7066
R2: 1.6975
R1: 1.6921
Pivot: 1.6878
S1: 1.6818
S2: 1.6777
S3: 1.6725
Trading recommendation:
Our stop at 1.6705 was hit for a minor loss. We will sell a break below 1.6777.
Technical analysis for EUR/USD for December 20, 2018
2018-12-20
EUR/USD made another try yesterday to break above the 1.14-1.1430 resistance area but if failed once again. Price remains inside the range of 1.13-1.14 since November. The triangle scenario has been canceled as both the downward break and yesterday's upward break were fake ones.
Green line - bullish RSI divergence
Yellow rectangles - range boundaries
Red line - major trend line resistance
EUR/USD reached 1.1440 yesterday but got rejected at the upper range boundary. So far we have seen three tops in this area and all of them resulting in a pull back towards 1.13 or lower. So far around 1.1270-1.13 we have seen two lows and two bounces. There will not be a fourth rejection at 1.1430. Next time we see move towards that level I expect it to be broken. If we do not move towards 1.1430, it is important to be patient and see how market reacts again at the lower boundary support at the 1.1270-1.13 area.
Technical analysis for Gold for December 20, 2018
2018-12-20
As we said in previous posts this is not the time be buying Gold. Gold price has most probably finished the entire leg higher from $1,196 and it is preparing for a pull back. Gold price however remains technically in a short-term bullish trend as long as price is above $1,233.
Blue line- short-term trend line support
Gold line - Bearish RSI divergence
Green line - Major trend line support
Gold price made a new higher high as expected and reached very close to our $1,263 target. Price made a high at $1,258 and pulled back sharply towards $1,241 while now it is trading around $1,246. The blue trend line support is at $1,234-35 and if this trend line is broken, we should expect a move lower at least towards $1,220-25 and the green trend line support. Short-term support is found at $1,241 and if broken it will increase the chances of us seeing a deeper pull back. The RSI is providing bulls with some warning signs and implies that bulls need to be very cautious.
Yellow rectangles - range boundaries
Red line - major trend line resistance
EUR/USD reached 1.1440 yesterday but got rejected at the upper range boundary. So far we have seen three tops in this area and all of them resulting in a pull back towards 1.13 or lower. So far around 1.1270-1.13 we have seen two lows and two bounces. There will not be a fourth rejection at 1.1430. Next time we see move towards that level I expect it to be broken. If we do not move towards 1.1430, it is important to be patient and see how market reacts again at the lower boundary support at the 1.1270-1.13 area.
Technical analysis for Gold for December 20, 2018
2018-12-20
As we said in previous posts this is not the time be buying Gold. Gold price has most probably finished the entire leg higher from $1,196 and it is preparing for a pull back. Gold price however remains technically in a short-term bullish trend as long as price is above $1,233.
Blue line- short-term trend line support
Gold line - Bearish RSI divergence
Green line - Major trend line support
Gold price made a new higher high as expected and reached very close to our $1,263 target. Price made a high at $1,258 and pulled back sharply towards $1,241 while now it is trading around $1,246. The blue trend line support is at $1,234-35 and if this trend line is broken, we should expect a move lower at least towards $1,220-25 and the green trend line support. Short-term support is found at $1,241 and if broken it will increase the chances of us seeing a deeper pull back. The RSI is providing bulls with some warning signs and implies that bulls need to be very cautious.
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