Outlook: Higher, far higher, in a multi month rally which should take prices well above the 2015 high of 12600.
It is not lost on me that I am calling for the dollar to rally against the Euro and Pound,
But I am calling for the very same dollar to decline against the Yen!
I know that this call breaks every fundamental analysis rule!
As the Elliott Wave often do!
I am causing some serious headaches in the community of fundamental analyst’s
by calling for the dollar to both rise and fall at the same time!
I does not stand to reason, you say.
Maybe not!
But who ever said that financial markets are reasonable?
just look at the valuation of twitter, a company that never made any money is valued at billions of dollars!
Where’s the reason there?
My point being,
Financial markets are emotional animal, and this particular little kitty is poised to get a little depressed soon!
The hourly chart shows the operating wave count off the wave (a) grey low.
the market traced out a possible expanded flat into wave (b) grey and now we are working on wave (c) grey to the downside.
Off the high I have counted five waves down in wave ‘i’ black.
right now wave ‘ii’ black seems to be complete at the 10305 high of last week.
So we could be about to decline in wave ‘iii’ black.
The 10 minute chart shows a possible interpretation of the action off Friday’s high.
This count shows a complete 5 waves down into todays low at 10155.
There is a good chance we will get a short corrective rally tomorrow , which should trace out 3 waves.
I have shown a possible target at the 10260 level.
This wave count is invalidated at the wave ‘ii’ black high.
Any rally right now should be treated with suspicion, the larger wave count as shown in the weekend video, must complete first before we start looking for the long term rally I am expecting.
For tomorrow I will be watching the form of the corrective rally if we get it,
The first interesting level is at 10210, the next at 10260, both are highlighted.
Takeaways:
- short term resistance levels at 10210 and 10260.
- looking for a minor wave correction to complete before testing a short trade.
- This wave count is invalidated at the wave ‘ii’ black high.
