2019-01-23
As long as resistance at 124.93 is able to cap the upside a more complex correction in wave ii remains possible for a second decline to 122.70.
If, however resistance at 124.93 gives away the alternate count comes into play. Under this count wave ii completed already with the dip to 123.40 and wave iii higher to 132.12 developing already.
R3: 126.38
R2: 125.81
R1: 125.19
Pivot: 124.93
S1: 124.55
S2: 124.10
S3: 123.72
Trading recommendation:
We will buy EUR at 123.00 or upon a break above resistance at 124.93
Elliott wave analysis of GBP/JPY for January 23, 2019
2019-01-23
GBP/JPY dipped to a low of 140.63 before moving higher again as expected. We are looking for upside acceleration towards the 145.17 and likely even closer to 147.71 as the next hurdles on the way towards 151.90 in wave iii.
Support is now seen at 141.35 with key support at 140.63, which should be able to protect the downside for the acceleration higher.
R3: 143.81
R2: 142.71
R1: 142.29
Pivot: 141.35
S1: 141.05
S2: 140.63
S3: 140.25
Trading recommendation:
We are long GBP from 140.90 and we will move our stop higher to 140.50.
Technical analysis of EUR/USD for 23/01/2019
2019-01-23
Technical market overview:
The EUR/USD market has hit the technical support at the level of 1.1336 and bounced nicely towards the technical resistance at the level of 1.1371. Moreover, the price has broken through the orange trend line as well, which might indicate the bulls are treating this bounce seriously and might even start to rally once the resistance zone between the levels of 1.1371 - 1.1318 is clearly violated.
The market conditions are extremely oversold and the momentum is negative, which supports the short-term bullish outlook. The larger time frame trend is still bearish, so the ease of movement is to the downside.
Recommendations:
The bulls are trying to take over the market control, so once the technical resistance zone between the levels of 1.1371 - 1.1380 is clearly violated, there might be another move up towards the level of 1.1414.
Technical analysis for Gold for January 23, 2019
2019-01-23
Gold price has been in an up trend since August and has managed to rise from $1,160 to nearly $1,300 where we find an important Fibonacci retracement level. Although technically we remain in a bullish trend and this price pull back is considered corrective in nature, we should not ignore the bearish scenario.
Green rectangle - next target if resistance at $1,300 breaks
Red rectangle - Fibonacci resistance
Gold price has reached the 61.8% Fibonacci retracement level of resistance and got rejected. This is a very important Fibonacci level because around this level we usually see changes in trend. So as long as price remains below the $1,300 resistance area, we remain cautious and the bearish scenario for a deeper pullback remains in play. If price breaks above resistance we should then expect price to reach $1,320. Short-term support is found at $1,270 and any break below it will be a sign of weakness. A move below $1,250-25 will increase the chances of a bigger downtrend in play targeting below $1,160.
Technical analysis for EUR/USD for January 23, 2019
2019-01-23
EUR/USD reached very close to our 1.1320 target. This target was given once 1.14 failed to hold. Price now seems to be turning upwards. In the weekly chart we see price respecting the weekly trend line support and this is a bullish sign.
Red rectangle - major resistanceBlack line - major support trend line
EUR/USD continues to make higher lows since November. Major resistance is at 1.1470-1.15. A beak above it will open the way for a move towards 1.17 at least. Support is critical at 1.13 and if price breaks below it I expect to eventually see a move towards 1.10-1.11. I continue to favor the bullish scenario as long as we trade above 1.13. Risk reward favors bulls now.
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